There are new Advisory Fuel Rates (AFRs) that company car drivers can use from the beginning of June 2025.
Once again, HMRC has made some minor alterations with a couple of changes to the petrol bandings.
Company car drivers can use the AFRs to reclaim fuel cost for business use. Alternatively, where a company pays for all fuel via a fuel card, the private journeys undertaken can be paid for with the AFRs to avoid punitive Company Fuel Tax or additional National Insurance.
Drivers of petrol or diesel hybrid vehicles should use the appropriate petrol or diesel banding.
The new Advisory Fuel Rates (AFRs) also include the latest Advisory Electric Rates (AER) for electric car drivers. These remain unchanged at 7p per mile.
New AFRs starting 01 July 2025
| Petrol (inc. hybrid): engine size (cc) | Advisory Fuel Rate |
| 1400cc or less | 12p (no change) |
| 1401cc to 2000cc | 14p (- 1p) |
| Over 2000cc | 22p (- 1p) |
| Diesel (inc. hybrid): engine size (cc) | Advisory Fuel Rate |
| 1600cc or less | 11p (no change) |
| 1601cc to 2000cc | 13p (no change) |
| Over 2000cc | 17p (no change) |
| Fully electric | Advisory Fuel Rate |
| All cars | 7p (no change) |
The previous quarter’s AFRs can be viewed here.
