What to charge for petrol - any ideas?

Kazonline

Hi all, I was hoping you would help me with something that often sends me into a tizz. When taking a friend somewhere because they don't have a car what do you think is a fair payment for petrol? I'm more than happy to give my time etc freely - to be honest I really like helping out - but as I am on such a tight budget and can't afford holidays etc (as they do) I don't think it's right that I should be meeting the cost of doing them a favour by paying for the petrol myself.
I know that the tax man allows up to 40p per mile, but that factors in insurance etc. What do you think would be a fair per mile guide? I drive an old volvo turbo estate (2ltr) which is fairly thirsty.
I'd really like your opinions on this guys - thanks,
Kaz

black-saturn

If your going there anyway dont charge anything. If your doing it just as a favour and not planning to go there yourself charge them 75p per journey.

Dora_the_Explorer_5

I think there is a page covering mileage rates on the AA site which vary according to size of engine etc but might give you some idea. Some NHS Trusts pay 23p a mile for very occasional use.

geo555

The cost of petrol would probably be about 20p a mile. Whatever you receive must be as an unconditional gift, otherwise your insurance is invalid as you would be classed as "hire and reward".

Kazonline

Thanks all. I hate having to charge petrol and never used to - but things are really tight and I don't want to have to refuse to help just because I can't afford to pay the petrol to take them.
Kaz x

Wig

geo555 wrote:

The cost of petrol would probably be about 20p a mile. Whatever you receive must be as an unconditional gift, otherwise your insurance is invalid as you would be classed as "hire and reward".

No, you are allowed to charge for the costs involved which includes obviously petrol, and it does not affect the insurance. There is no "reward" because you are only covering your costs.

OP, if I were you I would charge based on what your car gets mpg. A Volvo 2 litre is going to get about 22 mpg

a gallon costs 4.55 divide by 22 = 21p

You should be charging 20p per mile.

Kazonline

Thanks Wig - it's not as though people aren't willing to pay either, just get's embarassing deciding how much!
Thanks again
Kaz

Murphy_The_Cat

Kazonline wrote:

Thanks Wig - it's not as though people aren't willing to pay either, just get's embarassing deciding how much!
Thanks again
Kaz

Of course if they're decent folk, they'll make sure that they give you more than you ask for anyway.

MTC

ArsenalFC

You are being too nice and gets in unnecessary bother. Your friends should pay you a few £ per journey, it's much cheaper than taking the cab.

I will not take friends on journeys which are way out of my way, unless they are very good friends. In which case they normally buy me a meal or a drink.

One day this will bother you so much that you'll tell them you are busy everytime they ask and they'll know not to bother to ask again.

Katgoddess

My company pays 42p per mile for using our cars for work journeys. Find out the approximate journey length from the AA journey planning website then round to the nearest fiver.

chas1937

Up here petrol costs £4.33 and as I also have a Volvo 940 I would think about 20p per mile for fuel alone.£4.33 divided by your 22mpg works out at 19.6p although i manage to get about 26mpg intown.Taking a black cab into town from here which is 6 miles costs £8 so dont think your overcharging by any means at 20p per mile