4 wheeler fuel reimbursement in Travel Policy

Ask the Community Statutory Compliance
1

Hi All,

I am in process of including 4 wheeler fuel reimbursement in our Travel Policy. I need to know what is the general trend for Car fuel reimbursement.

  1. What will be the average per kilometer of car mostly companies considering while finalizing the rate per kilometer.
  2. What is mostly companies paying per kilometer to reimburse.

Kindly help.

Regards
Arpana

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2

Dear Arpana,

Firstly, you need to find out the mileage of a car which commonly used in your company. the mileage to be fixed and based on the mileage, you can work out. For eg. assuming maruthi alto gives a mileage of 14 km per lr. and today’s fuel charge is Rs.100 per lr… assuming maruthi alto travels about 50 kms.

Rs.14 per km to be reimbursed

Rs.13 X 50 km = Rs.650 (4 lr. petrol amount Rs.400 and balance Rs.250 for maintenance).

Hope this is clear t you.

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3

Hi Arpana,

In my corporate, we are providing reimbursements if its used for company use -

Transport Reimbursement
Transport Reimbursement is provided to employees to help them cover the expenses of own vehicle used for official purposes. Employees who own a two-wheeler are eligible to claim reimbursement at INR 6/- per kilometer and cars at INR 9/- per kilometer traveled for official purposes only.

Hope this will help you.

Take care

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4

Hi Shweta,

THanks for your reply. I request you to kindly help me in understanding, how did u arrive Rs. 9/- per kilometer for car. And, how much mileage you have considered for car.

Regards
Arpana

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5

Hi C006,

Could you please explain little more.

Regards
Arpana

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6

Dear Arpana,

Generally it is about mileage …what vehicles generally gives, you can take 40 to 45 km per ltr mileage for Bikes and 10 to 11 KM per ltr mileage for CARS

1 ltr of petrol costs : 100 rs / ltr …lets say - u need to check actual price from petrol pump

1 ltr = 100 Rs cost …1 ltr usage : 11 KM drive …so cost of 1KM = 100/11 = Rs.9.09/KM petrol consumption

Hope it will help, if not I’ll try to explain again.

Regards
Shweta

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7

Hi Shweta,

Yes, it is helpful. THank you.

Regards
Arpana

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8

This was helpful but in the wake of steeply rising fuel prices over the last 2 months, have any of you revised the per km reimbursement for 2 and 4 wheeler?

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9

What is the current going rate as on today for 2W and 4W?

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