HMRC's new fuel rates for petrol, diesel and electric cars released

Owners of petrol and diesel cars are set to face new costs this week due to a ruling by HMRC, while electric vehicles will enjoy cheaper rates. The new Advisory Fuel Rates announced by HMRC will kick in from March 1, bringing changes to company car rates.

These rates are exclusively for employees who utilise a company car. They should be used when reimbursing employees for business travel in their company vehicles or when employees need to cover the cost of fuel for personal journeys.

It's crucial not to apply these rates under any other conditions. The most recent petrol and diesel prices have been sourced from the Department for Energy Security and Net Zero (DESNZ), while the LPG (UK average) data comes from the Automobile Association website.

Diesel cars with engines up to 1,600cc will see a penny increase, going from 11 to 12 pence per mile (ppm). Petrol vehicles with engine sizes between 1,401-2,000cc will also see a hike, with rates rising from 14ppm to 15ppm.

However, rates for larger diesel engines will remain the same, with vehicles sporting engines between 1,601-2,000cc sticking at 13ppm and those over 2,000cc staying at 17ppm.

Meanwhile, the advisory electricity rate for electric company car drivers remains steady at 7ppm.

This figure is based on the 'Domestic electricity cost per kilowatt-hour', an annually published figure by the Department for Energy Security and Net Zero, updated with the latest estimate of electricity prices from the Office for National Statistics. Hybrid cars will be treated as either petrol or diesel vehicles for advisory fuel rates.

The new rates for petrol, LPG and diesel cars are detailed in the following tables. Previous rates can still be used for up to one month from the date any new rates apply, reports Birmingham Live.

Read more about HMRC's advisory fuel rates on gov.uk.