For fleet drivers in diesel and petrol cars, using the last quarter’s Advisory Fuel Rates (AFRs) offered by HMRC for March to May has been a painful experience against rapidly escalating fuel prices.
The AFRs were set before pump prices went stratospheric and reached record levels. According to the RAC, a litre of unleaded increased by 11p a litre during May to end the month at an average of 174p a litre. Diesel hit record levels at 183p a litre.
The AFRs can be used to claim business mileage in a company car without incurring punitive fuel tax.
However, HMRC has announced a more realistic set of figures for use from June onwards that reflect real world pump prices.
HMRC Advisory Fuel Rates
|Diesel: engine size (cc)||Advisory Fuel Rate|
|Up to 1,600cc||13 pence|
|1,601cc – 2,000 cc||16 pence|
|Over 2,000cc||19 pence|
|Petrol: engine size (cc)||Advisory Fuel Rate|
|Up to 1,400cc||14 pence|
|1,401cc – 2,000 cc||17 pence|
|Over 2,000cc||25 pence|
Hybrid vehicles use the appropriate petrol or diesel rates; drivers of electric cars use the AER for electric vehicles of 5p a mile.
Commenting, Managing Director of CBVC Vehicle Management, Mike Manners, said:
Now, more than ever, fleets need to be vigilant over fleet fuel costs. If you do not have proper fleet fuel management systems in place, then now really is the moment to do it.
It’s also crucial to explain to fleet drivers they should avoid expensive fill ups at motorway services and use cheaper supermarkets instead. It may also be worth reviewing if trips are necessary and whether an online meeting might be more appropriate and cost effective.
Advice and assistance on fuel
For help with managing fuel costs for your fleet, talk to one of our experts on 01283 351200 or email email@example.com.