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Educating Transport Management since 1944

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HMRC publishes new mileage reimbursement rates

26 Feb 2026

HMRC has released new advisory fuel rates (AFRs) effective March 1 for petrol, diesel, and electric vehicles (EVs) used by company drivers. Diesel and petrol mileage reimbursement rates remain unchanged. Hybrid cars continue to be treated as petrol or diesel for AFRs. LPG vehicle rates have decreased: up to 1,400cc—from 11ppm to 10ppm; 1,401-2,000cc—from 13ppm to 12ppm; over 2,000cc—from 21ppm to 19ppm. The advisory electric rate (AER) is now split between home and public charging, with a higher rate for public charging introduced from September 1, 2025.

Further information:

https://www.fleetnews.co.uk/news/new-hmrc-advisory-fuel-rate-afr-and-new-advisory-electricity-rate-aer