The amount of money drivers of petrol and diesel company cars can reclaim for fuel drops from 01 March 2024.
The new Advisory Fuel Rates (AFRs), which are published by HMRC, see the pence per mile rates fall.
Driver of electric cars (EVs), however, have the Advisory Electric Rate (AER) pegged at 9p per mile.
Drivers with petrol or diesel cars with engines up to 2.0 litres will be able to claim 1p less per mile. Drivers with larger petrol engines see a 2p per mile drops
Drivers of hybrid and plug-in hybrid vehicles should use the appropriate petrol or diesel AFR figures.
The timing of the drop in AFR rates comes at an inconvenient moment just as the RAC reports that the price of petrol has gone up more than 3p a litre in the last three weeks while diesel has increased by 4p.
While there may be some adjustment to accommodate these price rises in the next quarter’s rates, for now drivers could find themselves out of pocket.
These AFR rates only apply to employees using a company car. They can be used by companies to reimburse drivers for business travel or to arrange repayment from drivers for their private mileage where the company pays all the fuel.
Using AFR rates prevents drivers incurring expensive free fuel benefit.
New AFR rates effective from 01 March 2024
| Diesel (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,600cc | 12 pence (-1p) |
| 1,601cc – 2,000 cc | 14 pence (-1p) |
| Over 2,000cc | 19 pence (-) |
| Petrol (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,400cc | 13 pence (-1p) |
| 1,401cc – 2,000 cc | 15 pence (-1p) |
| Over 2,000cc | 24 pence (-2p) |
| Electric: fully-electric | Advisory Fuel Rate (AFR) |
| All models | 9 pence (-) |
Advice and assistance on fuel management
For help with managing fuel costs for your fleet, talk to one of our experts on 01283 351200 or email sales@cbvc.co.uk
