Company cars – advisory fuel rates from 1 September 2012

These rates apply to all journeys on or after 1 September 2012 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size

Petrol

LPG

1400cc or less 15p 10p
1401cc to 2000cc 18p 12p
Over 2000cc 26p 17p

 

Engine size

Diesel

1600cc or less 12p
1601cc to 2000cc 15p
Over 2000cc 18p

Petrol hybrid cars are treated as petrol cars for this purpose.

These rates are calculated from the fuel prices in the tables below:

Petrol

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400 48.1 40.9 135.7 617.0 15.1 15
1401 – 2000 40.7 34.6 135.7 617.0 17.8 18
over 2000 27.8 23.7 135.7 617.0 26.1 26

Diesel

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

Up to 1600 61.1 51.9 140.8 640.0 12.3 12
1601 to 2000 50.6 43.1 140.8 640.0 14.9 15
Over 2000 41.2 35.0 140.8 640.0 18.3 18

LPG

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400 38.5 32.7 71.0 322.8 9.9 10
1401 – 2000 32.6 27.7 71.0 322.8 11.7 12
over 2000 22.3 18.9 71.0 322.8 17.0 17

Notes:

  1. Mean mpg – miles per gallon – from manufacturers’ information, weighted by annual sales to businesses (Fleet Audits, 2010).
  2. Applied mpg – adjusted downwards by 15 per cent to take account of real driving conditions and lower fuel economy for older cars.
  3. For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
  4. Department for Energy and Climate Change latest petrol and diesel prices (20 August 2012), LPG (UK Average) from AA website (August 2012).

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