The General Services Administration (GSA) has announced it has raised the reimbursement rate to 48.5 cents a mile -- up from 40.5 cents -- for employees using personally owned vehicles (POV) on official travel, retroactive to Sept. 1.

Recognising recent gas price increases, GSA calculated the current operating costs of a POV to be 48.5 cents for automobiles, consistent with the Internal Revenue Service POV, announced this past Friday, Sept 9.

In calculating the POV rate, GSA looks at the costs of new vehicles and insurance, as well as gas prices.