HM Revenue & Customs has announced revised tax-free advisory fuel rates for use from 1 March. These are the rates at which employers can reimburse their employees for the fuel cost of any business mileage undertaken in, say, company cars or the rate at which employees can reimburse their employers (if the employer pays for all fuel generally) on their non-business mileage so as to avoid any private fuel benefit in kind.
The new rates per mile are as follows:
| Engine Size | Petrol | LPG |
| 1400cc or less | 15p | 10p |
| 1401cc to 2000cc | 18p | 12p |
| Over 2000cc | 26p | 18p |
Diesel rates change on a difference engine capacity:
| Engine Size | Diesel |
| 1600cc or less | 13p |
| 1601cc to 2000cc | 15p |
| Over 2000cc | 19p |
It is only the diesel rates that have increased over the previous Quarter's rates. Although these rates are supposed to apply from 1 March, they make no allowance for the 3pence increase in fuel duty supposed to be implemented later this month.
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