New UK fuel rules take effect, offering potential savings for company car drivers

Starting today, December 1, a new law from HMRC changes fuel rates for company cars, potentially saving drivers hundreds of pounds annually. The advisory fuel rate has decreased by 1p, eliminating the fuel benefit charge for private travel. The updated rates for petrol cars are now 12p per mile for engines up to 1,400cc, 14p for 1,401cc to 2,000cc, and 23p for over 2,000cc. Diesel rates have also been reduced, with rates now at 11p, 13p, and 17p for respective engine sizes. LPG rates remain unchanged, while electric vehicles continue at 7p per mile. Hybrid vehicles are classified based on their petrol or diesel engine size.