HMRC has issued its latest quarterly update to Advisory Fuel Rates (AFRs), effective 1 March 2026. These rates help businesses correctly reimburse employees for business travel.
Petrol Rates – No Changes
| Engine Size | Rate per Mile |
| Up to 1400cc | 12p |
| 1401–2000cc | 14p |
| Over 2000cc | 22p |
Diesel Rates – No Changes
| Engine Size | Rate per Mile |
| Up to 1600cc | 12p |
| 1601–2000cc | 13p |
| Over 2000cc | 18p |
LPG Rates – Reductions Across All Bands
| Engine Size | Previous (Dec–Feb) | New (From 1 Mar) |
| Up to 1400cc | 11p | 10p |
| 1401–2000cc | 13p | 12p |
| Over 2000cc | 21p | 19p |
Electric Vehicle Rates
| Charging Location | Previous (Dec–Feb) | New (From 1 Mar) |
| Home charging | 7p | 7p |
| Public charging | 14p | 15p |
Hybrid cars are treated the same as petrol or diesel vehicles for advisory fuel rate purposes.
You may continue using the previous rates for up to one month after the new rates take effect.
Questions? We’re Here to Help
If you have any questions about how these updated rates impact your mileage processes or VAT treatment, the Xeinadin VAT team is only a call or email away.
