Advisory fuel rates to remain unchanged for electric vehicles

The HMRC has released their advisory fuel rates for employees using company cars, effective from 1st December 2024.

The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero (DESNZ) the liquid petroleum gas (LPG) price is from the Automobile Association website. The advisory electric rate for fully electric cars is calculated using data from DESNZ, the Office for National Statistics (ONS), car electric consumption rates from the Department for Transport (DfT), and annual car sales volumes to businesses. 

Advisory fuel rates are calculated from fuel prices listed here.

From 1st December 2024, the advisory electric rate for fully electric cars will remain at seven pence per mile, as it was last quarter. It had decreased from eight pence per mile to seven pence per mile from September of this year. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

These are in comparison with petrol, diesel, and LPG rates which are much higher and dependent on engine size. The smallest petrol engine (1400cc or less) has an advisory rate of 12 pence per mile (11 pence per mile for LPG cars), while the smallest diesel engine (1600cc or less) has an advisory rate of 11 pence per mile. Large engines over 2000cc go up to 23, 21, and 17 pence per mile for petrol, LPG, and diesel cars, respectively. For diesel and petrol cars, these prices have been cut since last quarter.