Another cut in Advisory Fuel Rates for petrol and diesel company car drivers

Company Fleet  HMRC / Tax 

Company car drivers seeking reimbursement from their employers for fuel costs will be facing reduced claims from the beginning of December 2024.

The latest Advisory Fuel Rates (AFRs) published by HM Revenue and Customs introduce cuts of 1 pence per mile for engine size categories, whether petrol or diesel, which also covers both petrol and diesel hybrid vehicles.

The reimbursement rates reflect the general downward trend of oil prices, which remain at a three year low, according to RAC analysis. Average petrol costs are 135.2p and diesel 140.2p at forecourt prices.

There was no change to the electricity rates EV drivers can claim, which remain at 7p per mile. The electric rates are known as AERs.

The fuel rates only apply to employees using a company car. They can be used by companies to reimburse drivers for business travel or to arrange repayment from drivers for their private mileage where a company pays for all fuel. The last quarter’s AFR rates can be found here: HMRC cuts Advisory Fuel Rates across the board.

New AFRs from 01 December 2024

Petrol (inc. hybrid): engine size (cc)	Advisory Fuel Rate (AFR)
1400cc or less	12 pence (decrease of 1p)
1,401cc - 2,000cc	14 pence (decrease of 1p)
Over 2,000cc	23 pence (decrease of 2p)

Diesel (inc. hybrid): engine size (cc)	Advisory Fuel Rate (AFR)
1,600cc or less	11 pence (decrease of 1p)
1,601cc - 2,000cc	13 pence (decrease of 1p)
Over 2,000cc	17 pence (decrease of 1p)

Fully electric	Advisory Fuel Rate (AFR)
All cars	7 pence (no change)

Source: HMRC - visit www.gov.uk/guidance/advisory-fuel-rates

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