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New Advisory Fuel Rates published by HMRC

 Published 1st September 2022
General Guides  HMRC / Tax 

New AFRs effective from 1st September 2022.

Effective from Thursday 1st September, new Advisory Fuel Rates (AFRs) have been released by the government.

The rates are used by company car drivers claiming back fuel costs from their employer, or for drivers to repay the cost of fuel used for private travel.

Rates are reviewed quarterly and cover four main fuel types. Reimbursement rates have increased by up to 3 pence per mile (ppm), following a similar rise earlier this year because of rapidly climbing fuel costs.

HM Revenue and Customs' (HMRC) new figures have seen increases across the board for petrol and diesel rates, reflecting rising forecourt prices, as have some LPG rates, while the Advisory Electricity Rate (AER) for plug-in electric cars has remained unchanged.

Petrol models have seen rates for smaller engine models increase by 1 ppm, and 2 ppm for the largest category. Diesel rates have risen by as much as 3 ppm for models with engines greater than 2,000cc, and 1ppm for those vehicles with engines up to 1,600cc and from 1,601cc to 2,000cc. Hybrid vehicles are categorised as petrol or diesel models, based on their core fuel type.

New Advisory Fuel Rates From September

Diesel (inc. hybrid): engine size (cc) Advisory Fuel Rate (AFR)
Up to 1,600cc 14 pence
1,601cc - 2,000 cc 17 pence
Over 2,000cc 22 pence

Petrol (inc. hybrid): engine size (cc) Advisory Fuel Rate (AFR)
Up to 1,400cc 15 pence
1,401cc - 2,000cc 18 pence
Over 2,000cc 27 pence

LPG: engine size (cc) Advisory Fuel Rate (AFR)
Up to 1,400cc 9 pence
1,401cc - 2,000cc 11 pence
Over 2,000cc 17 pence

Electric: fully-electric Advisory Fuel Rate (AFR)
All models 5 pence

Source: HMRC

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