Due to the recent level of increases in UK average fuel pump prices since 1 December 2010, HM Revenue & Customs will be publishing new advisory fuel rates shortly, and these will take effect from 1 March.

The fuel rates are paid to company car drivers to reimburse fuel used on work business, but they have been heavily criticised for being considerably out of date and leaving drivers out of pocket. The last revision to the rates took effect on 1 December, when they were set using a petrol price of 119.0p per litre and diesel at 122.7p. This is compared to the latest average fuel price figures from fuel card suppliers that put petrol at 128.5p and diesel at 133.6p.

HMRC reserves the right to adjust rates between its regular 1 June and 1 December changes, if prices moved by more than 5%. The new rates are expected to be announced near the end of February.