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Advisory fuel rates update

21st November 2022

HMRC has published the latest advisory fuel rates (AFR) for company car users, which will apply from 1 December 2022.

The AFR for petrol, diesel and LPG vehicles will stay at the same levels as the September 2022 rates.

Meanwhile, AFR for fully electric cars will rise from 5p to 8p per mile. This electric rate will now be reviewed quarterly from 1 December 2022, alongside other mileage rates.

Hybrid cars will be treated as either petrol or diesel cars for AFR purposes.

The previous rates, effective September 2022, can be used for up to one month from the date the new rates apply.

The AFR for December 2022 are as follows:

Advisory fuel only mileage rates  
  Rates per mile  
Engine size  Petrol  LPG 
1400cc or smaller  15p  9p 
1401cc to 2000cc  18p  11p 
Over 2000cc  27p  17p 

 

 Engine size Diesel 
1600cc or smaller  14p 
1601cc to 2000cc  17p 
Over 2000cc  22p 

These rates are only applicable to employees using company cars to either reimburse them for business travel or when an employee needs to repay the cost of fuel used for private travel. Employers must not use these rates in any other circumstances.

The AFR will be updated next on 1 March 2023.

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