Advisory fuel rates
Source: gov.uk (2025-11-21)

Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.

When you can use the mileage rates

These rates only apply to employees using a company car.

Use the rates when you either:
- reimburse employees for business travel in their company cars
- need employees to repay the cost of fuel used for private travel
You must not use these rates in any other circumstances.

Reimburse employees for company car business travel

If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.

If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.

If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Employees to repay the cost of fuel used for private travel

There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

How rates are calculated

HMRC reviews rates quarterly on:
- 1 March
- 1 June
- 1 September
- 1 December
The mean miles per gallon (MPG) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits average 2021 to 2023).

For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density.

The ‘rates per mile’ calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny.

Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487).

When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny.

The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero (DESNZ) and the LPG (UK average) is from the Automobile Association website.

The advisory electric rate for fully electric cars is calculated using electrical price data from:
- Department for Energy Security and Net Zero
- Office for National Statistics (ONS)
- car electrical consumption rates from the Department for Transport (DfT)
- annual car sales volumes to businesses (Fleet Audits average for the last 3 years)
The Department for Energy Security and Net Zero annually published ‘pence per kilowatt hour’ cost is uprated by the quarterly Office for National Statistics’ Consumer Prices Index for electricity to account for quarterly price variations.

The value of the annual equivalent rate is then calculated by taking the cost of electricity per mile for each model provided by the Department for Transport and electricity price data from Department for Energy Security and Net Zero and Office for National Statistics. Based on company car sales data across the last 3 years, a weighted average value of the electrical costs per mile for a fully electric car is then calculated.

The public charging advisory electric rate for fully electric cars is calculated using additional public charging price data from the Zapmap Price Index.

The method for calculating a public charging advisory electric rate is the same as the home charging advisory electric rate. The only change is the underlying price of electricity (in pence per kilowatt-hour), which is updated to reflect the average price of public charging using slow or fast chargers (charging speed less than 50 kilowatts).

The advisory fuel rates are worked out from the fuel prices in these tables.

Petrol

Diesel

LPG

Electric

From 1 December 2025 the advisory electric rates for fully electric cars will be:
- 7 pence per mile for home charging
- 14 pence per mile for public charging
The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.

For journeys where a company car is charged at both public and residential locations, you can apportion the mileage based on how much charging happens at each place. The apportionment calculation should be fair and reasonable.

A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The advisory fuel rates for petrol, LPG and diesel cars are shown in the following tables.

You can use the previous rates for up to 1 month from the date any new rates apply.

From 1 December 2025

From 1 September 2025 to 30 November 2025

From 1 June 2025 to 31 August 2025

From 1 March 2025 to 31 May 2025

From 1 December 2024 to 28 February 2025

From 1 September 2024 to 30 November 2024

From 1 June 2024 to 31 August 2024

From 1 March 2024 to 31 May 2024

From 1 December 2023 to 29 February 2024

Find rates from an earlier date (https://webarchive.nationalarchives.gov.uk/ukgwa/20230901142959/https://www.gov.uk/guidance/advisory-fuel-rates).