Company car fuel rates changed on 1 September 2026
Four HMRC advisory fuel rates moved on 1 September 2026: petrol over 2000cc up, both larger diesel bands down, and LPG over 2000cc down. Old rates usable for one month.
Petrol over 2000cc rose to 27p a mile. Diesel fell to 16p for 1601 to 2000cc and 22p above that, and LPG over 2000cc fell to 20p. The electric rates are unchanged at 7p home and 15p public. Employers may use the previous rates for one month.
- Effective from
- 1 September 2026
- Who it affects
- Anyone with a company car who is reimbursed for fuel, or who repays private fuel
HMRC’s advisory fuel rates changed on 1 September 2026. These are the pence-per-mile figures for company cars, and they are reviewed quarterly, on 1 March, 1 June, 1 September and 1 December.
What moved
| 1 June 2026 | From 1 September 2026 | |
|---|---|---|
| Petrol over 2000cc | 26p | 27p |
| Diesel 1601cc to 2000cc | 17p | 16p |
| Diesel over 2000cc | 23p | 22p |
| LPG over 2000cc | 21p | 20p |
The rest held. Petrol is 14p up to 1400cc and 17p from 1401cc to 2000cc. Diesel is 15p up to 1600cc. LPG is 11p up to 1400cc and 13p from 1401cc to 2000cc.
The advisory electric rates for fully electric cars are unchanged: 7p a mile charging at home, 15p charging publicly.
The one-month grace period
Employers may use the previous quarter’s rates for up to one month from the date the new rates apply. So a September payment on June’s figures is not an error.
These are not the mileage rates for your own car
This is the distinction that costs people money, in both directions.
Advisory fuel rates are for a company car. They cover fuel only, because the employer already owns the car. Use them when your employer reimburses you for business fuel in a company car, or when you repay the cost of private fuel to avoid the fuel benefit charge.
Approved Mileage Allowance Payments are for using your own car for business. They are 55p a mile for the first 10,000 business miles and 25p after that from 6 April 2026, and they cover everything: fuel, insurance, wear, depreciation.
Claiming 27p a mile for your own car, or 55p a mile for a company car, are both wrong, and the second is the more expensive mistake.
Next review
1 December 2026. Our company car guide reads these figures from a module that holds both the current and the superseded set, precisely because of the one-month grace period, and it selects by date rather than waiting for anyone to remember.