Welcome news from HMRC comes in the form of a penny a mile increase to the the Advisory Electricity Rate (AER) for company car drivers of electric vehicles.
The new Advisory Electricity Rate (AER) is now 9 pence per mile (ppm), reflecting the higher cost of domestic and commercial electricity prices since it was last reviewed and raised to 8 pence per mile (from 5p per mile). The new rate is effective from 01 March 2023.
While company car drivers of zero emission vehicles will be feeling better, the same may not be true of petrol and diesel drivers: HMRC has downgraded the Advisory Fuel Rate at the same time to reflect decreasing costs at the fuel pumps.
Diesel AFR rates have gone down by between 1 to 2ppm depending on engine size, while petrol rates have fallen by between 2 to 3ppm.
HMRC Advisory Fuel Rates
| Diesel: engine size (cc) | Advisory Fuel Rate |
| Up to 1,600cc | 13 pence (minus 1p) |
| 1,601cc – 2,000 cc | 15 pence (minus 2p) |
| Over 2,000cc | 20 pence (minus 2p) |
| Petrol: engine size (cc) | Advisory Fuel Rate |
| Up to 1,400cc | 13 pence (minus 2p) |
| 1,401cc – 2,000 cc | 15 pence (minus 3p) |
| Over 2,000cc | 23 pence (minus 4p) |
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.
