Motorists are being warned of new HMRC costs that could affect overall motoring costs for petrol, diesel and electric vehicle drivers.
HM Revenue and Customs updates costs for its advisory fuel rates four times per year, with the latest update set to be introduced on September 1, 2026.
The rates are used to reimburse employees for business travel in their company cars, or if a business needs employees to repay the cost of fuel used for private travel.
Rates only apply to employees using company cars and HMRC outlines that drivers must not use these rates in any other circumstances.
The latest update sees prices fluctuating across petrol, diesel and Liquefied Petroleum Gas (LPG) rates, while electric vehicle rates remain the same.
Once the new rates are introduced in September, HMRC will unveil one further update in December, before the quarterly rates change once more next March.
GB News has compiled a list of the new HMRC advisory fuel rate changes for petrol, diesel, electric and LPG vehicles from September 1, 2026.
HM Revenue and Customs has introduced new advisory fuel rates for September
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New Advisory Fuel Rates from September 1, 2026
Petrol
Engines up to 1,400cc – Remains at 14p
Between 1,401cc and 2,000cc – Remains at 17p
Over 2,000cc – Rising from 26p to 27p
Diesel
Engines up to 1,600cc – Remains at 15p
Between 1,601cc and 2,000cc – Falling from 17p to 16p
Over 2,000cc – Falling from 23p to 22p
AFR rates for electric cars will not change, regardless of where they charge their vehicles
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PAElectric
Home charger – Remains at 7p
Public charger – Remains at 15p
Liquefied Petroleum Gas (LPG)
Engines up to 1,400cc – Remains at 11p
Between 1,401cc and 2,000cc – Remains at 13p
Over 2,000cc – Falling from 21p to 20p
There are estimated to be thousands of Liquefied Petroleum Gas vehicles in the UK
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REUTERSHMRC calculates the totals for advisory fuel rates using data from various sources when they refresh rates four times per year.
The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero (DESNZ), while the UK average for LPG comes from the AA website.
Electric car data uses price data from DESNZ, the Office for National Statistics, consumption rates from the Department for Transport and annual car sales volumes to businesses.