Latest Advisory Fuel Rates – with effect June 1st 2018

HMRC has just published the latest Advisory Fuel Rates (AFR) for company car users, effective from 1st June 2018


Ignoring LPG, very little has changed – just a 1p increase for diesel cars with engines under 1,600cc. As always, please note that the rates only apply in the following circumstances:


  • If the employee pays for their own fuel, the employer can reimburse for their business mileage using these rates
  • If the employer pays for all of the employee’s fuel, the employee can reimburse for their private mileage using these rates


New rates from 1st June (the previous rates for 1st March are shown in brackets) – with changes highlighted:


Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 11p (11p) 7p (7p)
1401cc to 2000cc 14p (14p) 9p (8p)
Over 2000cc 22p (22p) 14p (13p)
Engine size Diesel – amount per mile
1600cc or less 10p (9p)
1601cc to 2000cc 11p (11p)
Over 2000cc 13p (13p)


Hybrid cars are treated as either petrol or diesel cars for this purpose. HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December.

The HMRC advisory fuel rates are available here, and more details about how to use them are here.

As always, employers have a period of grace of up to one month from 1st June before they need to switch to these updated rates.


For further information, please contact