Latest advisory fuel rates published

Advisory fuel rates for company cars are updated by HMRC on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, or where an employee has to reimburse their employer for private journeys. Where HMRC’s rates are used, there are no income tax consequences for the employee. HMRC has now published the advisory rates applicable from 1 June 2025. The rate per mile will be:

Engine size	Petrol	LPG
1,400cc or less	12p	11p
1,401cc to 2,000cc	14p	13p
Over 2,000cc	22p	21p

 

Engine size	Diesel
1,600cc or less	11p
1,601cc to 2,000cc	13p
Over 2,000cc	17p

 

The rate for fully electric vehicles continues to be 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.

These rates apply from 1 June 2025, but it's possible to use the previous rates for another month. As the rates for small diesel engines and larger petrol engines have gone down by 1p, drivers of those vehicles will be slightly better off using the rates for the current quarter.