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New fuel rates published as petrol prices climb to record high

 

HM Revenue and Customs (HMRC) has issued new fuel advisory rates, which apply to all relevant journeys made on or after 1 March 2011.

 

It comes as the price of unleaded petrol reached a new high of 130p per litre this week.

 

The advisory fuel rates are accepted either for employers reimbursing employees for the cost of fuel for business mileage, or for employees reimbursing employers for the cost of fuel for private mileage.

 

The rates are usually revised in December and June, although HMRC can issue new rates if fuel prices fluctuate by 5% from the published rates.

 

For one month from the date of change, employers may use either the previous or new current rates, as they choose.

 

Earlier this week, motoring organisation the AA revealed that prices at the pumps have reached an average of 130.03p a litre - just 2p away from the £6 gallon. Diesel is now averaging 135.44p a litre, the AA said.

 

AA president Edmund King said: ‘Now that petrol has hit record highs at the pumps the Chancellor must abandon the proposed tax hike (next month) and seriously consider reducing fuel duty to stabilise prices.

 

‘The current fuel costs and political uncertainty in the Middle East and North Africa means that the Government must bite the bullet and act to stop fuel prices from fuelling inflation and driving people off the roads,’ he added.

 

Meanwhile, the RAC has warned that instability in the oil market could see petrol prices rise by ‘another 8p a litre in the near future’.

 

The new rates can be viewed at: http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm