HMRC has introduced new advisory fuel rates for company cars, with the latest figures applying from 1 September 2026.
The rates are used by employers when reimbursing employees for business travel in a company car or when employees repay the cost of fuel used for private journeys. They do not apply where employees use their own cars for business travel.
For petrol cars, the rate remains 14p per mile for engines of 1,400cc or less and 17p for engines between 1,401cc and 2,000cc. The rate for cars over 2,000cc has increased from 26p to 27p.
Diesel rates are now 15p per mile for engines up to 1,600cc, 16p for engines from 1,601cc to 2,000cc and 22p for larger engines. The latter two rates have fallen by 1p compared with the previous quarter.
LPG rates are 11p, 13p and 20p respectively across the three engine-size bands. The rate for LPG cars over 2,000cc has fallen by 1p.
For fully electric company cars, the rates remain unchanged at 7p per mile for home charging and 15p for public charging. Hybrid cars continue to be treated as either petrol or diesel vehicles.
HMRC reviews the rates quarterly. Employers can continue using the previous rates for up to one month after the new rates take effect.
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