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Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 June 2026.

 

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:

 

 Engine size  Petrol
 1400cc or less   14p
 1401cc - 2000cc   17p
 Over 2000cc  26p
 Engine size   Diesel
 1600cc or less   15p
 1601cc - 2000cc   17p
 Over 2000cc   23p
 Engine size   LPG
 1400cc or less   11p
 1401cc - 2000cc  13p
 Over 2000cc  21p

 

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars

• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

 

 

11/06/2026

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REF: MC/NL/1.2