Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 June 2022 to Question 15313 on Advisory Fuel Rates (AFR), what assessment he has made of the merits of reviewing the AFR more frequently than once a quarter, given that on 13 June 2022, the Department for Business, Energy and Industrial Strategy recorded average fuel prices of 182.53 pence per litre for petrol, and 190.43 pence per litre for diesel, prices which are higher than the current AFR of 165.1 pence per litre for petrol, and 179.7 pence per litre for diesel.

AFRs need to be calculated in advance of their publication on GOV.UK. This means that the AFRs published on the 1^st June 2022 (165.1 pence per litre for petrol, and 179.7 pence per litre for diesel) were calculated using BEIS data from 16^th May 2022. The next publication of AFRs is due on 1^st September.

AFRs are an administrative easement and increasing the frequency of review would create administrative burdens for employers as well as HMRC.

AFR rates are not mandatory, and employers and employees can agree to use different rates to reflect scenarios in which a car is more fuel efficient or where the cost of business travel is higher.