Bold headline: New fuel rules shake up what drivers claim back for business travel (and this is the part that could affect your commute). If you use a company car, here’s what’s changing and why it matters.
Starting today, Sunday, March 1, 2026, new fuel-station rules take effect for petrol and diesel motorists. HM Revenue & Customs (HMRC) updates advisory fuel rates every three months to reflect fluctuating fuel prices and ensure employees are fairly reimbursed for business journeys in company vehicles. Advisory fuel rates represent the government’s suggested reimbursement amounts and are recalculated quarterly as petrol and diesel prices shift.
From March 1, 2026, petrol and diesel advisory fuel rates will remain the same for most engines, but there are notable changes for LPG vehicles. In short, LPG-driven cars—which burn liquefied petroleum gas (a mix of propane and butane)—will see updated guidance, while traditional petrol and diesel rates stay as they were published prior to today.
Rate changes by engine size (petrol and diesel):
- Small engines up to 1,400cc: the rate drops from 11p per mile to 10p per mile.
- Mid-sized engines 1,401–2,000cc: the rate falls from 13p per mile to 12p per mile.
- Larger engines over 2,000cc: the rate decreases from 21p per mile to 19p per mile.
Petrol-specific reimbursement remains unchanged for some bands, with 12p per mile for petrol cars up to 1,400cc, 14p per mile for 1,401–2,000cc, and 22p per mile for engines above 2,000cc.
Diesel-specific rates also stay the same as of today: smaller cars under 1,600cc receive 12p per mile; 1,601–2,000cc cars get 13p per mile; and diesel engines over 2,000cc are reimbursed at 18p per mile.
In related news, a broader rule rolled out earlier this month requires petrol stations to update fuel prices within 30 minutes of any change. This is part of the new Fuel Finder Scheme, launched February 2, designed to publish near real-time price data from UK fuel retailers so consumers can compare prices more easily.
You can browse the government-backed Fuel Finder website to check current local prices and avoid being overcharged at the pump.
Context and practical implications:
- The quarterly refresh of advisory rates helps ensure employee reimbursements align with actual fuel costs, reducing out-of-pocket expenses for business travel.
- The fresh LPG adjustments reflect the growing, though still smaller, use of LPG vehicles; many drivers can still switch to LPG with reasonable feasibility, though uptake varies by region and model.
- Real-time price transparency through the Fuel Finder Scheme aims to empower drivers to choose cheaper stations nearby and plan trips with cost in mind.
Controversy and questions to consider:
- With rates for LPG vehicles changing while petrol/diesel bands mostly hold steady, is there a risk this drives more drivers toward LPG as a cost-saving option, and does that align with broader emissions goals?
- Do quarterly updates adequately reflect rapid fuel-price swings, or would more frequent adjustments better protect business travelers from under- or over-reimbursement?
- How might the Fuel Finder data influence pricing strategies at local stations and competition in popular routes?
What do you think: will these changes save money for company drivers, or will they complicate expense claims and budgeting? Share your experiences and opinions in the comments.
