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Certain drivers will be hit with different fuel costs from March as part of major changes to HMRC's fuel advisory rates. These rates are updated every3 months and detail how much companies should reimburse staff for business travel in company cars.

The rates are also used by employees who use their company cars for any additional private mileage. March 2026 is no different, with the latest HMRC petrol and diesel figures kicking into life as of March 1, running until the start of June.

Standard petrol and diesel cars are unaffected by the advisory fuel rates from the last quarter, remaining in place. However, updates have been made to Liquid Petroleum Gas (LPG) with drivers to receive less money under the tweaks.

LPG cars are dual-fuel vehicles and usually run on a mixture of both propane and butane. LPG tends to burn cleaner than other vehicles, pumping out much lower particulates than petrol or diesel models.

These vehicles are less common in the UK, with Dacia one of the only manufacturers offering LPG cars on the market. LPG models tend to come with lower fuel costs and will have a reduced environmental impact. However, these models usually have less boot space and will come with fewer refueling stations compared to traditional petrol.

LPG vehicles up to 1,400cc have seen their advisory fuel rates cut from 11 pence per mile to 10p. Slightly larger vehicles with an engine size of between 1,401-2,000cc will also be paid less, with figures falling from 13p to 12p.

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Bigger vehicles with an engine greater than 2,000cc see the biggest change, with advisory fuel rates falling from 21p to 19p. However, advisory fuel rates are not mandatory, with employers allowed to use their own system if the cost is higher than the HMRC rate.

Petrol

Up to 1,400cc - 12p per mile

1,401-2,000cc - 14p per mile

More than 2,000cc - 22p per mile

Diesel

Up to 1,600 cc - 12p

1,601-2,000cc - 13p per mile

More than 2,000cc - 18p per mile

LPG cars

Up to 1,400cc - 10p per mile

1,401-2,000cc - 12p per mile

More than 2,000cc - 19p per mile