The advisory fuel rates that apply from 1 June 2025 have been adjusted for petrol vehicles of 1401cc and over with a 1p cut, while diesel engines up to 1600cc are also cut 1p per mile, back to the pre-March rate, with other engine sizes unchanged. The electric mileage rate remains unchanged 

The previous rates, effective from March 2025, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.