Company cars - advisory fuel rates from 1 June 2013

These rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size	Petrol	LPG
1400cc or less	15p	10p
1401cc to 2000cc	17p	12p
Over 2000cc	25p	18p

Engine size	Diesel
1600cc or less	12p
1601cc to 2000cc	14p
Over 2000cc	18p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

These rates are calculated from the fuel prices in the tables below:

Petrol

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Pence per mile	AFR
up to 1400	49.07	41.7	133.2	605.4	14.5	15
1401 - 2000	41.17	35.0	133.2	605.4	17.3	17
over 2000	28.41	24.1	133.2	605.4	25.1	25

Diesel

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Pence per mile	AFR
Up to 1600	61.28	52.1	138.4	629.3	12.1	12
1601 to 2000	51.53	43.8	138.4	629.3	14.4	14
Over 2000	42.03	35.7	138.4	629.3	17.6	18

LPG

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Pence per mile	AFR
up to 1400	39.3	33.4	74.4	338.2	10.1	10
1401 - 2000	32.9	28.0	74.4	338.2	12.1	12
over 2000	22.7	19.3	74.4	338.2	17.5	18

Notes:

Mean mpg - miles per gallon - from manufacturers' information, weighted by annual sales to businesses (Fleet Audits average, 2009-2011).
Applied mpg - adjusted downwards by 15 per cent to take account of real driving conditions and lower fuel economy for older cars.
For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
Department for Energy and Climate Change latest petrol and diesel prices (20 May 2013), LPG (UK Average) from AA website (April 2013).

Will the rate per mile figures change if fuel prices go up or down?

Since March 2011 the rates have been reviewed four times a year. Any changes take effect at the beginning of each calendar quarter - on 1 March, 1 June, 1 September and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.

In view of the increased frequency of review, HMRC will no longer consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates.

Employers should make themselves aware of any changes by referring to this page in late February, May, August and November each year. It is the primary source of information.

VAT

HMRC will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.

Further information is available for: