New Advisory Fuel Rates are in place this month, with drivers of electric company cars (EVs) receiving their second rise this year, this time rising by 1p to 10 pence per mile (ppm) reflecting the continuing high cost of electricity.
HMRC analyses Advisory Fuel Rates (AFR) each quarter, which includes the Advisory Electricity Rate (AER). These can be used to reimburse drivers of company cars for business mileage without incurring tax, or can be used to repay private mileage where the company pays for all fuel.
For drivers of traditional petrol and diesel vehicles there have also been rises. The diesel AFR for company cars with an engine over 2,000cc increased by 1p to 19ppm, while petrol cars with engines between 1,401-2,000cc see an increase of 1p to 16ppm and over 2,000cc petrol models receive a 2p increase to 25ppm.
Drivers of hybrid and plug-in electric vehicles use the appropriate petrol or diesel charges.
Commenting on the rise in the AER rates, Managing Director of CBVC Vehicle Management Manners said:
The best advice is for EV drivers to charge up at home where this is possible because it’s the cheapest source of electricity. While a rise to 10p is welcome it won’t cover costs if a driver constantly uses rapid and ultra rapid chargers while electricity prices remain high.
New AFR rates effective from 01 September 2023
| Diesel (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,600cc | 12 pence (-) |
| 1,601cc – 2,000 cc | 14 pence (-) |
| Over 2,000cc | 19 pence (+1p) |
| Petrol (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,400cc | 13 pence (-) |
| 1,401cc – 2,000 cc | 16 pence (+1p) |
| Over 2,000cc | 25 pence (+2p) |
| Electric: fully-electric | Advisory Fuel Rate (AFR) |
| All models | 10 pence (+1p) |
Advice and assistance on fuel management
For help with managing fuel costs for your fleet, talk to one of our experts on0330 822 4500or emailsales@cbvc.co.uk.
