Motorists are being warned of fresh changes being introduced next month that could impact how much they spend to drive their petrol, diesel or electric car.
HM Revenue and Customs releases new advisory fuel rates (AFRs) four times per year to help businesses and employees keep track of motoring expenses.
They apply to employees who use company cars and need to be reimbursed for business travel, or for employees to repay the cost of fuel used for private travel in those vehicles.
The rates are calculated four times per year, with the most recent update being released on September 1. Motorists can expect the new AFRs to be released on Monday, December 1.
HMRC announced that it would split the rate for electric cars to differentiate between those who use home and public chargers.
For journeys where a company car uses both public and residential charging locations, employees are instructed to apportion the mileage based on how much charging happened at each location.
HMRC calculates the rates using the latest petrol and diesel prices from the Department for Energy Security and Net Zero (DESNZ).
New advisory fuel rates will be introduced by HMRC at the start of December
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GETTYElectric vehicle rates are calculated via data from DESNZ, the Office for National Statistics and car electrical consumption rates from the Department for Transport.
While the use of liquefied petroleum gas (LPG) is rare, the rates are calculated based on the UK average from the Automobile Association website.
GB News has compiled the latest HMRC advisory fuel rates to help motorists know how much they need to pay or could be compensated when using their company cars.
New rates were introduced for home and public EV chargers during the last HMRC update
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GETTYAdvisory fuel rates per mile from September 1, 2025
Petrol
Engines up to 1,400cc – 12p
Between 1,401cc and 2,000cc – 14p
Over 2,000cc – 22p
Diesel
Engines up to 1,600cc – 12p
Between 1,601cc and 2,000cc – 13p
Over 2,000cc – 18p
Liquefied Petroleum Gas (LPG)
Engines up to 1,400cc – 11p
Between 1,401cc and 2,000cc – 13p
Over 2,000cc – 21p
Electric
Home charger – 8p
Public charger – 14p