HMRC advisory fuel rates from 1 September 2026
From 1 September 2026 HMRC's advisory fuel rates for company cars are 14p, 17p, 27p a mile for petrol, 15p, 16p, 22p for diesel and 11p, 13p, 20p for LPG, by engine size. Fully electric cars are 7p a mile charged at home and 15p on public chargers. HMRC next reviews the rates on 1 December 2026.
Rates from HMRC, checked 28 October 2026. Real cost uses the DESNZ pump price for the week of 26 October 2026.
Advisory fuel rates from 1 September 2026
| Engine size | Petrol | LPG |
|---|---|---|
| 1,400cc or less | 14p | 11p |
| 1,401cc to 2,000cc | 17p | 13p |
| Over 2,000cc | 27p | 20p |
| Engine size or charging | Rate |
|---|---|
| Diesel 1,600cc or less | 15p |
| Diesel 1,601cc to 2,000cc | 16p |
| Diesel over 2,000cc | 22p |
| Electric, home charger | 7p |
| Electric, public charger | 15p |
Hybrid cars are treated as petrol or diesel cars. Employers can use the previous rates for up to one month after a change.
Advisory fuel rate calculator
What you reimburse company car drivers, and what the fuel really costs at this week's pump price.
Driving at 70 mph instead of 80 uses 12.3% less fuel per mile in a diesel car (DfT).
Talk to us about cutting fuel costsElectric real cost is the rate itself (HMRC sets it from average tariffs). LPG real cost uses HMRC's own LPG price, as DESNZ does not publish LPG weekly.
Do the advisory fuel rates cover the real cost of fuel?
HMRC set the current rates using diesel at 179.2p and petrol at 159.9p a litre. In the week of 26 October 2026 the UK average was 199.2p for diesel and 174.1p for petrol. Using HMRC's own average MPG for each band, this is what fuel really costs per mile now.
| Band | HMRC mean MPG | Advisory rate | Real cost this week | Difference |
|---|---|---|---|---|
| Diesel 1,600cc or less | 55.7 | 15p | 16.3p | +1.3p |
| Diesel 1,601cc to 2,000cc | 49.6 | 16p | 18.3p | +2.3p |
| Diesel over 2,000cc | 36.6 | 22p | 24.7p | +2.7p |
| Petrol 1,400cc or less | 50.7 | 14p | 15.6p | +1.6p |
| Petrol 1,401cc to 2,000cc | 42.8 | 17p | 18.5p | +1.5p |
| Petrol over 2,000cc | 27.2 | 27p | 29.1p | +2.1p |
Where the real cost is higher, HMRC allows employers to pay more if they can show the higher cost per mile. Where it is lower, the employer is overpaying for fuel. Either way, the fuel itself is the cost a fleet can cut: see how much fuel each extra mile an hour uses.
Advisory fuel rates archive
Every quarter since September 2024, newest first. Changes against the quarter before are shown in brackets. Download the archive as JSON.
| Period | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| From 1 September 2026 | 14p / 17p / 27p (up 1p) | 15p / 16p (down 1p) / 22p (down 1p) | 11p / 13p / 20p | 7p home, 15p public |
| 1 June 2026 to 31 August 2026 | 14p (up 2p) / 17p (up 3p) / 26p (up 4p) | 15p (up 3p) / 17p (up 4p) / 23p (up 5p) | 11p / 13p / 21p | 7p home, 15p public |
| 1 March 2026 to 31 May 2026 | 12p / 14p / 22p | 12p / 13p / 18p | 10p / 12p / 19p | 7p home, 15p public |
| 1 December 2025 to 28 February 2026 | 12p / 14p / 22p | 12p / 13p / 18p | 11p / 13p / 21p | 7p home, 14p public |
| 1 September 2025 to 30 November 2025 | 12p / 14p / 22p | 12p (up 1p) / 13p / 18p (up 1p) | 11p / 13p / 21p | 8p home, 14p public |
| 1 June 2025 to 31 August 2025 | 12p / 14p (down 1p) / 22p (down 1p) | 11p (down 1p) / 13p / 17p | 11p / 13p / 21p | 7p |
| 1 March 2025 to 31 May 2025 | 12p / 15p (up 1p) / 23p | 12p (up 1p) / 13p / 17p | 11p / 13p / 21p | 7p |
| 1 December 2024 to 28 February 2025 | 12p (down 1p) / 14p (down 1p) / 23p (down 1p) | 11p (down 1p) / 13p (down 1p) / 17p (down 1p) | 11p / 13p / 21p | 7p |
| 1 September 2024 to 30 November 2024 | 13p / 15p / 24p | 12p / 14p / 18p | 11p / 13p / 21p | 7p |
How HMRC works out the rates
HMRC takes the average MPG of cars sold to businesses over the last three years for each engine band, and the latest pump prices from DESNZ (LPG from the AA). The rate is the fuel price per gallon divided by the MPG, rounded to the nearest penny. Electric rates use DfT's figures for electricity per mile, the domestic electricity price uprated by the ONS electricity index, and the Zapmap index for public charging.
Advisory fuel rates are only for company cars. If your employees use their own car or van, see HMRC mileage rates: 55p a mile from 6 April 2026.
Guides
Questions people ask
What are the HMRC advisory fuel rates now?
From 1 September 2026: petrol 14p, 17p, 27p a mile (1,400cc or less, 1,401 to 2,000cc, over 2,000cc); diesel 15p, 16p, 22p (1,600cc or less, 1,601 to 2,000cc, over 2,000cc); LPG 11p, 13p, 20p; fully electric 7p charged at home and 15p on public chargers.
When do advisory fuel rates change?
HMRC reviews them four times a year, on 1 March, 1 June, 1 September and 1 December. The next change is due on 1 December 2026. Employers can keep using the previous rates for up to one month after a change.
Who can use advisory fuel rates?
Only employees driving a company car: to reimburse business miles, or to repay the employer for fuel used on private miles. Employees using their own car are paid under the approved mileage rates instead, which are 55p a mile for the first 10,000 business miles from 6 April 2026.
Can an employer pay more than the advisory fuel rate?
Yes, if it can show the fuel cost per mile is higher, for example a less efficient car or a higher fuel price. This week diesel is 199.2p a litre, against the 179.2p HMRC used to set the current rates.
Do advisory fuel rates apply to vans?
No. Advisory fuel rates are for company cars. Company vans have their own rules, and employees using their own van are paid under the approved mileage rates.
How can a company cut what it pays in fuel per mile?
Lower motorway speeds. On DfT's fuel curves a diesel car uses 12.3% less fuel per mile at 70 mph than at 80 mph. A speed limiter holds that on every journey for every driver.
Sources and method
- HM Revenue and Customs, Advisory fuel rates. Rates and HMRC's workings (mean MPG and fuel prices) checked 28 October 2026
- Department for Energy Security and Net Zero, Weekly road fuel prices. This week's pump prices, week of 26 October 2026
- DfT TAG data book v2.03 (May 2026), Table A1.3.8. Fuel use against speed
Work it out in the calculator above.
DfT's fuel curves show a diesel van at 60 mph uses 14.5% less fuel per mile than at 68 mph.
Free consultation: we go through your numbers and show what limiting would save.
Talk to us about cutting your fuel bill
Speed limiters for vans, cars, HGVs and buses, made in Britain since 1985. Nationwide installation in the UK, where we come to you, and supply and support for fleets worldwide through our engineers and partners.
Limit the speed and track every van
TrackSpeed puts an AutoKontrol speed limiter and GPS tracking in one device, with one installation and one subscription.
See TrackSpeed