Business News

Company cars - advisory fuel rates from 1 July 2009

These figures give about one month’s notice of the changes and apply to all journeys on or after 1 July 2009 until further notice.

As for recent changes, HM Revenue & Customs (HMRC) is content for the new rates to be implemented immediately where employers are able and wish to do so.

Engine size

Petrol

Diesel

LPG

1400cc or less

10p

10p

7p

1401cc to 2000cc

12p

10p

8p

Over 2000cc

18p

13p

12p

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

48.8

43.9

97.5

443.4

10.1

10

1400 - 2000

40.0

36.0

97.5

443.4

12.3

12

over 2000

28.1

25.3

97.5

443.4

17.5

18

Diesel

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 2000

50.9

45.8

103.4

469.9

10.3

10

Over 2000

38.7

34.8

103.4

469.9

13.5

13

LPG

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400

39.0

35.1

52.0

236.4

6.7

7

1400 - 2000

32.0

28.8

52.0

236.4

8.2

8

over 2000

22.5

20.3

52.0

236.4

11.7

12

Notes:

  1. Mean mpg - miles per gallon - from manufacturers information, weighted by annual sales to businesses (Fleet Audits, 2007).
  2. Applied mpg - adjusted downwards by 10 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 Business, Enterprise & Regulatory Reform's latest petrol and diesel prices (18 May 2009), LPG from AA website (April 2009).