Advisory fuel rates update

HMRC's latest advisory fuel rates (AFR) for company car users will apply from today (1 March 2023).

The AFR for all petrol and diesel engine sizes have decreased by between 1p and 3p per mile compared to the rates introduced in December 2022. The rates for LPG vehicles have either decreased by 1p or stayed at the same levels.

Meanwhile, the advisory electricity rate (AER) for fully electric cars has risen from 8p to 9p per mile. Hybrid cars will be treated as either petrol or diesel cars for AFR purposes.

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

The AFR for March 2023 are as follows:

Advisory fuel only mileage rates  
  Rates per mile  
Engine size  Petrol  LPG 
1400cc or smaller  13p  10p 
1401cc to 2000cc  15p  11p 
Over 2000cc  23p  17p 

 

 Engine size Diesel 
1600cc or smaller  13p 
1601cc to 2000cc  15p 
Over 2000cc  20p 
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.

The AFR will be updated next on 1 June 2023.

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