Magee Gammon Blog Tax Company Car Advisory Fuel Rates

Company Car Advisory Fuel Rates

Company cars – advisory fuel rates from 1 September 2013

These rates apply to all journeys on or after 1 September 2013 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 11p
Over 2000cc 26p 16p
Engine size Diesel
1600cc or less 12p
1601cc to 2000cc 15p
Over 2000cc 18p

Hybrid cars are treated as either petrol or diesel 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 49.07 41.7 137.0 622.8 14.9 15
1401 – 2000 41.17 35.0 137.0 622.8 17.8 18
over 2000 28.41 24.1 137.0 622.8 25.8 26
Diesel
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
Up to 1600 61.28 52.1 141.7 644.3 12.4 12
1601 to 2000 51.53 43.8 141.7 644.3 14.7 15
Over 2000 42.03 35.7 141.7 644.3 18.0 18
LPG
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
up to 1400 39.3 33.4 69.8 317.3 9.5 10
1401 – 2000 32.9 28.0 69.8 317.3 11.3 11
over 2000 22.7 19.3 69.8 317.3 16.4 16

Notes:

  1. Mean mpg – miles per gallon – from manufacturers’ information, weighted by annual sales to businesses (Fleet Audits average, 2009-2011).
  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 (19 August 2013), LPG (UK Average) from AA website (August 2013).

 

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