AI Fuel Rates

HMRC has again updated its advisory fuel rates for fuel costs when using company cars. As expected, the rates that apply from 1 December 2021 have increased slightly due to the recent increase in fuel costs.

You can use the previous rates for up to 1 month from the date the new rates apply. The latest rates are as follows:

Engine sizePetrol per mileLPG per mileDiesel per mile
Up to 1,400cc13p9p
1,401cc to 2,000cc15p10p
Up to 1,600cc11p
1,601cc to 2,000cc13p
Over 2,000cc22p1516p



  • The advisory electricity rate for fully electric cars is 5 pence per mile.
  • Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.


You can use the rates when you either:

  • Reimburse employees for business travel in their company cars.
  • Need employees to repay the cost of fuel used for private travel.

You can find more information on advisory fuel rates on the Gov.UK website.

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