HMRC has confirmed that some petrol drivers will now pay 14p per mile under its newly published advisory fuel rates. The updated rates were released this week on the government website and officially came into force on Tuesday, September 1.
New rates by engine size
Under the revised scale, petrol motorists with engine sizes up to 1400cc will pay 14p per mile. For vehicles with engines between 1401cc and 2000cc, the rate rises to 17p per mile, while drivers of cars with engines over 2000cc will pay 27p per mile.
HMRC reviews these advisory fuel rates quarterly, on March 1, June 1, September 1, and December 1. The rates are calculated using the mean miles per gallon (MPG) figures provided by manufacturers, taking into account annual sales to businesses based on Fleet Audits data from the last three years.
How rates are calculated
For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol, reflecting the lower volumetric energy density of LPG compared to petrol.
The rates per mile shown in the tables are rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny. Rates per mile that end in 0.5 are rounded down to the nearest whole penny when the underlying unrounded figure ends in a number less than 0.5, such as 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 used in these calculations are sourced from the Department for Energy Security and Net Zero (DESNZ), while the LPG UK average comes from the Automobile Association website.
Electric vehicle rates
The advisory electric rate for fully electric cars is calculated using electrical price data from the Department for Energy Security and Net Zero and the Office for National Statistics (ONS), car electrical consumption rates from the Department for Transport (DfT), and annual car sales volumes to businesses based on Fleet Audits averages from the last three years.
