The Government has announced the latest Advisory Fuel Rates (AFRs), which take effect from 1 September 2024 and are in place until 30 November. The rates have come down from the previous quarter, reflecting reductions in fuel and electricity prices. If you’re new to AFRs, they’re the per-mile costs you can claim from your company for business use of a company car, or your private car.
AFRs apply when you reclaim the cost of fuel used for business mileage in a company car or private car. The keyword is ‘advisory’ – your company can choose to repay you at a higher or lower rate. However, payments over government-standard AFRs are treated as taxable profit and earnings for Class 1 National Insurance contributions.
You can incur a fuel benefit charge (FBC) on company car usage if non-business mileage isn’t accurately logged. FBC is essentially a tax that’s bundled in with all your PAYE contributions. You can find out more about AFRs in our guide to reclaiming business mileage.
What does private mileage cost in an electric company car?
If your company reimburses you for all the fuel/electricity costs you incur in your company car, you may be required to keep an accurate log of non-business mileage and then pay the company back for it at the relevant AFR. If you have an electric car, the AFR for the current quarter is 7p per mile.
If you have a plug-in hybrid car and mostly drive it on electricity, you would still have to repay the company at the AFR for petrol or diesel cars.
What are the current advisory fuel rates?
The rates are reviewed every three months to reflect the latest fuel and energy costs. Below, we’ve laid laid out some easy-to-read tables showing the latest advisory fuel rates for petrol, diesel, LPG and electric cars, and the increase or decrease in those rates since the last review on 1 June 2024. Note that the relevant petrol or diesel AFRs apply to all types of hybrid car, which could put them at a disadvantage for you.
Petrol advisory fuel rates from 1 September 2024
| Engine capacity | Amount per mile | Change from 1 June 2024 |
| Below 1,400cc | 13 ppm | +1p |
| 1,401cc – 2,000cc | 15 ppm | -1p |
| Over 2,000cc | 24 ppm | -2p |
Diesel advisory fuel rates from 1 September 2024
| Engine capacity | Amount per mile | Change from 1 June 2024 |
| Below 1,600cc | 11 ppm | -1p |
| 1,601cc – 2,000cc | 13 ppm | -1p |
| Over 2,000cc | 18 ppm | -2p |
LPG advisory fuel rates from 1 September 2024
| Engine capacity | Amount per mile | Change from 1 June 2024 |
| Below 1,400cc | 11 ppm | 0p |
| 1,401cc – 2,000cc | 13 ppm | 0p |
| Over 2,000cc | 21 ppm | 0p |
Electric rate per mile from 1 September 2024
The advisory fuel rate for electric car is now 7p per mile. That’s down from 8p in the previous quarter.
The AFRs applicable in the previous quarter – 1 June to 31 August 2024 – are still used for claims for business mileage driven during that period, so long as you make the claim before the end of September. Below, you can see a table of those rates.
Advisory fuel rates for 1 June to 31 August 2024
| Engine capacity | Petrol | Diesel | LPG |
| 1400cc or less | 14 ppm | 13 ppm | 11 ppm |
| 1401-2000cc | 16 ppm | 15 ppm | 13 ppm |
| Over 2000cc | 26 ppm | 20 ppm | 21 ppm |
A rate of 8p per mile applied for electric cars during this period.
You can find more information about advisory fuel rates on the HMRC website. The next review with the latest rates will be published on 1 December 2024.
