The advisory fuel rates that apply from 1 March 2025 have been adjusted for petrol vehicles of 1401cc to 2000cc with a 1p increase, with other engine sizes unchanged, while diesel engines up to 1600cc are up 1p per mile, with other engine sizes at the same rate. The electric mileage rate remains unchanged 

The previous rates, effective from December 2024, 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.