Advisory Fuel Rates for company car drivers from 01 June 2025
Published 2nd June 2025
The company car driver Advisory Fuel Rates (AFRs) change from 01 June 2025. The government has made some minor tweaks to the pence per mile that employees can claim in the petrol bandings but otherwise there is no change to the rates.
The new Advisory Fuel Rates (AFRs) published by HM Revenue and Customs means driver reimbursement for business fuel usage (or for private mileage repayment if a company pays for all fuel via a fuel card) can take place without incurring Company Fuel Tax or additional National Insurance contributions.
There was no change to the electricity rates EV drivers can claim, which remain at 7p per mile. The electric rates are known as AERs.
Drivers of all hybrid vehicles should use the appropriate petrol or diesel banding.
New AFRs from 01 June 2025
| Petrol (inc. hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
|---|---|
| 1400cc or less | 12 pence (no change) |
| 1,401cc - 2,000cc | 14 pence (- 1p) |
| Over 2,000cc | 22 pence (- 1p) |
| Diesel (inc. hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
|---|---|
| 1,600cc or less | 11 pence (increase of 1p) |
| 1,601cc - 2,000cc | 13 pence (no change) |
| Over 2,000cc | 17 pence (decrease of 1p) |
| Fully electric | Advisory Fuel Rate (AFR) |
|---|---|
| All cars | 7 pence (no change) |
Source: HMRC - visit www.gov.uk/guidance/advisory-fuel-rates
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