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Advisory fuel rates see decrease from 1 June

HMRC has announced new advisory fuel rates that see a decrease in the rates for petrol and diesel vehicles from 1 June 2013.

The rates can be used to reimburse company car drivers for business mileage.  Under the latest changes, there’s a 1p decrease in the rates that can be claimed for mid-size and large-engined petrol vehicles.  There’s also a 1p decrease for small-engined and mid-size diesel vehicles.  LPG rates stay the same.

The latest rates (old ones in brackets) are:

Engine size Petrol LPG
1400cc or less 15p (15p) 10p (10p)
1401cc to 2000cc 17p (18p) 12p (12p)
Over 2000cc 25p (26p) 18p (18p)


Engine size Diesel
1600cc or less 12p (13p)
1601cc to 2000cc 14p (15p)
Over 2000cc 18p (18p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.  These rates are calculated from the fuel prices in the tables below:


Engine size(cc) MeanMPG AppliedMPG Fuel price(per litre) Fuel price(per gallon) Penceper mile AFR
up to 1400 49.07 41.7 133.2 605.4 14.5 15
1401 – 2000 41.17 35.0 133.2 605.4 17.3 17
over 2000 28.41 24.1 133.2 605.4 25.1 25


Engine size
(cc) Mean
MPG Applied
MPG Fuel price
(per litre) Fuel price
(per gallon) Pence
per mile AFR
Up to 1600 61.28 52.1 138.4 629.3 12.1 12
1601 to 2000 51.53 43.8 138.4 629.3 14.4 14
Over 2000 42.03 35.7 138.4 629.3 17.6 18


Engine size(cc) MeanMPG AppliedMPG Fuel price(per litre) Fuel price(per gallon) Penceper mile AFR
up to 1400 39.3 33.4 74.4 338.2 10.1 10
1401 – 2000 32.9 28.0 74.4 338.2 12.1 12
over 2000 22.7 19.3 74.4 338.2 17.5 18

These rates apply to all journeys on or after 1 June 2013 until further notice.  For one month from the date of change, employers may use either the previous or new current rates, as they choose.  Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

HMRC will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.

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About the Author

Alex Baker
"The reasonable man adapts himself to the conditions that surround him... The unreasonable man adapts surrounding conditions to himself... All progress depends on the unreasonable man."

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