HMRC unveil major update launching next week impacting petrol, diesel and electric car owners

Felix Reeves

By Felix Reeves


Published: 23/11/2025

- 12:49

The HMRC rates will be active from Monday, December 1

Motorists are being warned of new HMRC rates for petrol, diesel and electric vehicles that could impact how much they pay to drive.

Every quarter, HM Revenue and Customs unveils new advisory fuel rates, with the latest update being introduced on Monday, December 1, 2025.


Advisory fuel rates are used by employees using a company car, and they cannot be used for any other circumstances.

The rates are used when employees need to be reimbursed for business travel in their company cars, or they need employees to repay the cost of fuel used for private travel.

Rates are published for petrol, diesel, electric car and liquefied petroleum gas (LPG) vehicles.

The next update on December 1, 2025, will be followed by another review on March 1, 2026, followed by June 1, September 1, and December 1.

In the September update, HMRC changed the guidance for electric vehicle drivers to differentiate between those who use home and public chargers.

Instances when drivers use both a public and home or workplace charger should be apportioned based on the mileage and how much was charged at each location.

HMRC letter and a petrol pump

HMRC will roll out the new advisory fuel rates at the start of December

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GETTY

In the latest update, only one rate is charged, namely the home charger rate per mile, which will fall from eight pence to seven pence.

Rates are calculated by petrol and diesel prices from the Department for Energy Security and Net Zero (DESNZ), while LPG is taken from the Automobile Association.

Electric vehicle rates are calculated via data from DESNZ, the Office for National Statistics and car electrical consumption rates from the Department for Transport.

To help motorists prepare for the new HMRC rates, GB News has outlined all of the price changes launching on December 1.

Home electric vehicle chargerNew rates were introduced for home and public EV chargers during the last HMRC update | GETTY

Advisory fuel rates per mile from December 1, 2025

Petrol

Engines up to 1,400cc - Remains at 12p

Between 1,401cc and 2,000cc - Remains at 14p

Over 2,000cc - Remains at 22p

Diesel

Engines up to 1,600cc - Remains at 12p

Between 1,601cc and 2,000cc - Remains at 13p

Over 2,000cc - Remains at 18p

Electric

Home charger - Reduced from 8p to 7p

Public charger - Remains at 14p

Liquefied Petroleum Gas (LPG)

Engines up to 1,400cc - Remains at 11p

Between 1,401cc and 2,000cc - Remains at 13p

Over 2,000cc - Remains at 21p