Fuel advisory rates update

Jun 1, 2023

HMRC has published the latest advisory fuel rates (AFR) for company car users, which applies from today (1 June 2023).

The AFR for diesel has been cut, while unleaded rates have stayed the same. There has also been a minimal increase in LPG rates compared to March 2023's announcement.

The advisory electric rate (AER) for fully electric cars will remain at 9p per mile.

The previous rates can still be used for up to one month after June's rates apply.

Advisory rates can be used to:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

When employees are reimbursed, HMRC will accept there is no taxable profit and no class 1A National Insurance to pay.

The advisory fuel rates for June 2023 are as follows:

   Rates per mile  
Engine size   Petrol LPG 
 1400CC or smaller  13p 10p 
1401cc to 2000cc  15p 12p 
 Over 2000cc  23p  18p


 Engine size Diesel 
 1600cc or smaller  12p
 1601cc to 2000cc  14p
 Over 2000cc  18p
The AER will also be reviewed quarterly in line with fuel for the next AFR update on 1 September 2023.

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