Fuel Reimbursement Rates: How Does Your Company Compare and What Should We Adjust?

Hi All, I request you to share what is applicable in your organization. Currently, we are using Rs. 6.5 per kilometer for cars and Rs. 3.5 per kilometer for two-wheelers. This is due for revision. Your data point will help in benchmarking.

Thanks and regards, Taruna

The best thing to do is to calculate the kilometers a person travels during the month (you could base this on the average kilometers traveled by the employee based on their fuel reimbursement claims for the last six months) and fix liters of petrol or diesel as entitlement each month.

For example, if a person travels 100 kilometers per month, and their car gives, say, 15 kilometers per liter, then allow them 7 liters of fuel as their entitlement each month.

This will take care of frequent increases in the fuel rates and the need to revise the fuel reimbursement rates every now and then.

Regards,
Vasant Nair

Fuel Price Deregulation and Reimbursement Policies

After the deregulation of fuel prices, especially petrol, oil marketing companies are making revisions in the retail prices of petrol at periodic intervals in line with the import prices of crude oil. However, the reimbursement charges are not being revised at regular intervals. Companies should update their fuel reimbursement policies at least once a year.

Thank you.