The latest Advisory Fuel Rates (AFRs) have been published this month (December), with the previous rises for drivers of electric company cars (EVs) reversed with a drop in the Advisory Electric Rate (AER) payment by 1p to 9p per mile.
The Advisory Fuel Rates are published by HMRC each quarter, and can be used to reimburse drivers of company cars for business mileage without incurring fuel tax. Where all fuel is provided, such as on fuel cards, drivers can repay via payroll for any private mileage in their car.
The new rates can be used immediately, or if preferred, the last quarter’s rates can be used throughout December but must be changed to the new AFR rates for 01 January onwards.
For company car drivers of diesel vehicles there is more welcome news with a rise of 1p per mile across all bands. Petrol rates have gone up by 1p in the smallest and largest engine bands.
Drivers of hybrid and plug-in electric vehicles use the appropriate petrol or diesel charges.
Commenting on the rate changes, Managing Director of CBVC Vehicle Management Manners said:
While the cost of fuel is rising, which is met by the new AFR rates, EV drivers might feel shortchanged by the drop in the AER rate. Our advice is for EV drivers to charge at home if that is possible and benefit from cheaper electricity rather than costlier fast-chargers.
New AFR rates effective from 01 December 2023
| Diesel (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,600cc | 13 pence (+1p) |
| 1,601cc – 2,000 cc | 15 pence (+1p) |
| Over 2,000cc | 19 pence (+1p) |
| Petrol (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,400cc | 14 pence (+1p) |
| 1,401cc – 2,000 cc | 16 pence (-) |
| Over 2,000cc | 26 pence (+1p) |
| Electric: fully-electric | Advisory Fuel Rate (AFR) |
| All models | 9 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.
