Advisory Fuel Rates September 2025

Styles & Associates
Aug 28
2 min read

From September 2025, HMRC has updated its advisory fuel rates (AFRs) for company cars. The rates, which are reviewed every quarter in line with fuel price changes, apply when employees claim business mileage in a company vehicle.

The new rates take effect on 1 September 2025 and can be used for expense claims or employer reimbursements.

Employers when they want to reimburse employees for business-related driving using a company car, and
Employees when they repay fuel expenses for private travel done with a company vehicle.

Note: If you use your own car for work, or if your employer doesn’t provide a company vehicle, you’ll need to claim business mileage using HMRC’s mileage allowance rates: Travel — mileage and fuel rates and allowances - GOV.UK

Advisory Fuel Rates - What’s Changing from 1 September 2025

Petrol & LPG (and hybrids treated as petrol or diesel)

From 1 September:

Petrol:
- Up to 1,400 cc: 12 pence per mile (no change)
- 1,401–2,000 cc: 14 pence per mile (no change)
- Over 2,000 cc: 22 pence per mile (no change)
LPG:
- Up to 1,400 cc: 11 pence per mile
- 1,401–2,000 cc: 13 pence per mile
- Over 2,000 cc: 21 pence per mile

Diesel

New as of 1 September:

Up to 1,600 cc: increased from 11 pence to 12 pence per mile
1,601–2,000 cc: stays at 13 pence per mile
Over 2,000 cc: increased from 17 pence to 18 pence per mile

Fully Electric Cars (new split by charging type)

This represents a notable change:

Home charging: 8 pence per mile
Public charging: 14 pence per mile

Until now, electric cars had a single flat rate of 7 pence per mile. The split reflects the higher real-world cost of public charging.

Why It Matters

Diesel drivers with smaller or larger engines will see a modest increase.
Electric vehicle users will need to track whether charging was done at home or publicly to apply the correct rate-especially important since public charging costs more.
Employers and employees need to get this right to avoid taxable discrepancies or under-reimbursement.

Transitional Grace Period

You can continue using the previous advisory rates for up to one month after the new rates take effect.

Quick Rates Summary

Fuel Type	Engine Size / Charging Location	Rate from 1 Sept 2025
Petrol	Up to 1,400 cc	12p/mile (no change)
	1,401–2,000 cc	14p/mile (no change)
	Over 2,000 cc	22p/mile (no change)
Diesel	Up to 1,600 cc	12p/mile (up from 11p)
	1,601–2,000 cc	13p/mile (no change)
	Over 2,000 cc	18p/mile (up from 17p)
LPG	Up to 1,400 cc	11p/mile (no change)
	1,401–2,000 cc	13p/mile (no change)
	Over 2,000 cc	21p/mile (no change)
Electric (EVs)	Home charging	8p/mile (new)
	Public charging	14p/mile (new)
Transitional Period	All types	Old rates valid until 30 Sept 2025