Significant Advisory Fuel Rate Increases Announced for All Vehicle Types
Motorists across the nation are facing substantial cost increases as HMRC has confirmed new advisory fuel rates (AFRs) set to take effect from June 1, 2026. These updated rates apply to petrol, diesel, electric, and liquefied petroleum gas (LPG) vehicles, marking a significant financial adjustment for drivers, particularly those with company cars.
Detailed Breakdown of New Per-Mile Rates
The revised advisory fuel rates, which are updated quarterly by HMRC, introduce higher costs across all vehicle categories. For petrol engines, rates now stand at 12p per mile for engines up to 1,400cc, 14p for those between 1,401cc and 2,000cc, and 22p for engines over 2,000cc.
Diesel vehicle owners will see rates of 12p per mile for engines up to 1,600cc, 13p for engines between 1,601cc and 2,000cc, and 18p for engines exceeding 2,000cc. Electric vehicle charging costs have also been adjusted, with home charging set at 7p per mile and public charging at 15p per mile.
LPG vehicles face increases as well, with rates of 10p per mile for engines up to 1,400cc, 11p for engines between 1,401cc and 2,000cc, and 19p for engines over 2,000cc.
Expert Analysis and Market Context
Simon Williams, head of policy at the RAC, provided critical context for these increases, linking them directly to ongoing geopolitical tensions. "Since the conflict began, average petrol prices are now almost 12p (9%) higher at 144.51p a litre, with diesel up by twice that amount (24p, 17%) to 166.24p," Williams stated.
He further explained that diesel prices have risen by 2p in just the last two days, with the cost of filling a typical family car increasing by £6.40 for unleaded petrol and a substantial £13 for diesel compared to early March figures.
Projected Future Price Trajectories
Williams warned that the situation is likely to deteriorate further, noting that oil prices have consistently remained above the $100 per barrel mark. "Unfortunately, further rises look all but inevitable going into next week," he cautioned.
The RAC predicts that average unleaded petrol prices could reach 150p per litre by Easter, with diesel potentially hitting 180p per litre. This escalation places significant pressure on household budgets, particularly for those heavily dependent on personal vehicles for daily transportation needs.
These advisory fuel rate adjustments reflect broader economic pressures and geopolitical instability, directly impacting motoring costs for millions of drivers nationwide. The June 1 implementation date gives motorists limited time to prepare for these increased financial burdens.
