HMRC updates advisory fuel rates and advisory electric rates from 1 March 2026
HMRC advisory fuel rates update By Mark Checksfield, Head of Operations at Fleetmaxx Solutions
HMRC has refreshed its Advisory Fuel Rates and Advisory Electric Rates, and from 1 March 2026 the new figures are officially in play. If you run company cars, process mileage claims, or keep a careful eye on compliance, this is one of those updates that quietly matters a great deal.
Petrol and diesel rates remain steady this quarter. LPG sees small decreases across all engine bands. On the electric side, home charging stays at 7 pence per mile, while public charging rises from 14 pence to 15 pence per mile.
Below is a clear breakdown of what has changed and what has stayed the same.
HMRC Advisory fuel rates from 1 March 2026
Petrol rates
1400cc or less: 12 pence per mile
1401cc to 2000cc: 14 pence per mile
Over 2000cc: 22 pence per mile
There are no changes to petrol rates this quarter.
LPG rates
1400cc or less: 10 pence per mile, down from 11 pence
1401cc to 2000cc: 12 pence per mile, down from 13 pence
Over 2000cc: 19 pence per mile, down from 21 pence
LPG sees small but notable reductions across each engine category.
Diesel rates
1600cc or less: 12 pence per mile
1601cc to 2000cc: 13 pence per mile
Over 2000cc: 18 pence per mile
Diesel rates also remain unchanged from the previous quarter. Hybrid vehicles continue to be treated as either petrol or diesel vehicles for advisory fuel rate purposes.
HMRC Advisory electric rates
7 pence per mile, unchanged.
15 pence per mile, up from 14 pence.
For fleets with a growing number of electric vehicles, this increase in the public charging rate will need to be reflected in mileage reimbursement policies.
Why HMRC Advisory fuel rates matter for fleet operators
These figures are more than just administrative updates. They shape reimbursement policies, influence cost forecasting, and ensure that businesses remain aligned with HMRC guidance when employees use company cars for business travel. Even small movements, such as the LPG reductions or the public charging increase, can have a cumulative impact across larger fleets.
Staying aligned with HMRC rates protects your business. It keeps mileage claims accurate, prevents over or under reimbursement, and supports correct VAT treatment. In short, it keeps your processes robust and compliant.
