HMRC launches new price hikes for petrol, diesel and electric cars today in blow to thousands

Motorists are being warned of fresh price hikes launching today that could see them pay more for their petrol, diesel and electric cars.

HM Revenue and Customs has introduced new advisory fuel rates for people using company cars to reimburse employees for business travel, or when employees need to repay the cost of fuel used for private travel.

These targets are reviewed quarterly, with the latest AFRs applying from today, Monday, June 1, 2026, before further measures launch in September.

In the latest update, motorists will face price hikes for vehicles of many different powertrains, including petrol, diesel and Liquefied Petroleum Gas (LPG).

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Soaring fuel prices across the UK have contributed greatly to the rising AFRs for petrol and diesel following the outbreak of war in the Middle East.

Fuel costs jumped to their highest price in more than three years between March and June, with motorists at the pump facing costs of around 159p per litre for petrol and 184p for diesel.

Despite this, rates for electric vehicles will remain the same, regardless of whether the company car driver charges at home or at a public charger.

To help drivers adapt to the new costs, GB News has rounded up the new advisory fuel rates launching today.

Advisory fuel rates per mile from June 1, 2026

Petrol

Engines up to 1,400cc - Rising from 12p to 14p

Between 1,401cc and 2,000cc - Rising from 14p to 17p

Over 2,000cc - Rising from 22p to 26p

Diesel

Engines up to 1,600cc - Rising from 12p to 15p

Between 1,601cc and 2,000cc - Rising from 13p to 17p

Over 2,000cc - Rising from 18p to 23p

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Electric

Home charger - Remains at 7p

Public charger - Remains at 15p

Liquefied Petroleum Gas (LPG)

Engines up to 1,400cc - Rising from 10p to 11p

Between 1,401cc and 2,000cc - Rising from 12p to 13p

Over 2,000cc - Rising from 19p to 21p

HMRC uses data from the Department for Energy Security and Net Zero (DESNZ) to calculate the advisory fuel rate for petrol and diesel.

Similarly, the UK average for LPG is taken from the Automobile Association website, even if the vehicles are less common on roads.

Electric rates are calculated using data from DESNZ, the Office for National Statistics, car electrical consumption rates from the Department for Transport and annual car sales volumes to businesses.

Changes were made to AFRs in recent months, with HMRC differentiating between public charging and home charging.

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