Latest advisory fuel rates update

26 Nov 21

New advisory fuel rates coming into play next week for employees’ usage of company cars, following the latest quarterly update.

From 1 December 2021, the following advisory fuel rates are in place for petrol and LPG-fuelled company cars.

Engine sizePetrol (per mile)LPG (per mile)
 1400cc or less13p 9p 
 1401cc to 2000cc15p 10p 
 Over 2000cc22p 15p 

For company cars with diesel engines, the rates are:

Engine sizeDiesel (per mile)
 1600cc or less11p 
 1601cc to 2000cc13p 
 Over 2000cc16p 

Hybrid cars are treated as either petrol or diesel cars for this purpose, while the advisory electricity rate for fully-electric cars is 5p per mile.

These rates apply when an employer reimburses employees for business travel in their company car and when employees are required to repay the cost of fuel used for private travel.

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