Petrol and diesel drivers using company cars face updated advisory fuel rates starting Sunday, March 1, 2026. HM Revenue and Customs (HMRC) reviews these rates every three months to reflect fluctuating fuel prices and ensure fair reimbursements for business travel.
Understanding Advisory Fuel Rates
These government-recommended rates guide reimbursements for company car drivers based on engine size and fuel type. Officials calculate the rates quarterly to align with current fuel costs.
LPG Rate Reductions
LPG (Liquefied Petroleum Gas) vehicles see decreases across all engine sizes:
- Up to 1,400cc: 10 pence per mile (down from 11p)
- 1,401-2,000cc: 12 pence per mile (down from 13p)
- Over 2,000cc: 19 pence per mile (down from 21p)
LPG cars, which run on a propane-butane mix, remain uncommon in the UK but include models like the Dacia Sandero and Duster. Many petrol or diesel vehicles can convert to LPG.
Petrol Rates Stay the Same
Petrol advisory rates remain unchanged:
- Up to 1,400cc: 12 pence per mile
- 1,401-2,000cc: 14 pence per mile
- Over 2,000cc: 22 pence per mile
Diesel Rates Unchanged
Diesel advisory rates also hold steady:
- Up to 1,600cc: 12 pence per mile
- 1,601-2,000cc: 13 pence per mile
- Over 2,000cc: 18 pence per mile
