The lack of AFRs for plug-in hybrids means drivers aren’t incentivised to use them properly, experts have warned.

The latest AFRs introduce a flat 4p per mile rate for electric vehicles, marking the first time HMRC has recognised electricity as a fuel. It follows a petition from ACFO to launch these figures, but says hybrid vehicles – including plug-in hybrids – should be treated as petrol or diesel vehicles.

This has raised concerns that it could lead to PHEVs not being used correctly, as plugging them in is not incentivised. An issue raised as part of Fleet World’s campaign to Save the Company Car, which launched in July, arguing that inadequate incentives are slowing fleets’ ULEV uptake. Operators can, of course, set their own rates if necessary.

Ashley Barnett, Head of Consultancy at Lex Autolease, said: “Many fleet operators resort to existing AFR rates. From the perspective of a driver with a plug-in hybrid vehicle using the same AFR as drivers of traditionally fuelled vehicles, where is the incentive to charge-up instead of fuelling-up? They receive the same reimbursement either way.

“If an AFR was set specifically for plug-in hybrids at say eight or nine pence per mile, it would encourage drivers to plug-in and charge the vehicle rather than refuelling. The implementation of a specific AFR could really help companies to realise the full environmental and cost benefits of a plug-in hybrid vehicle.”