21 MPG combined isn’t going to win any fuel economy awards, but for the 2016 Volvo XC60 AWD with the 2.5L 5-cylinder engine, it’s a pragmatic compromise. This isn’t a vehicle bought by hypermilers seeking to squeeze every last drop from a gallon of fuel. It’s purchased by individuals and families who prioritize safety, Scandinavian design, and year-round usability, especially in climates where all-wheel drive is a genuine asset.

City and highway performance

The EPA estimates of 19 MPG in the city and 26 MPG on the highway paint a clear picture. The lower city figure is largely attributable to the XC60’s weight and the inherent inefficiencies of stop-and-go driving with a traditional automatic transmission. The six-speed automatic (S6) is reliable, but not the most fuel-saving technology of that era. On the open road, the 26 MPG highway rating is more respectable, reflecting the engine’s ability to cruise comfortably and efficiently at steady speeds. However, hills and headwinds can quickly diminish these numbers, especially when the vehicle is fully loaded with passengers and cargo. The 2.5L inline-5 is a smooth and characterful engine, but it needs to work a bit harder than some of its turbocharged contemporaries to maintain highway speeds, especially on inclines.

Annual fuel cost

According to the EPA, the estimated annual fuel cost for the 2016 Volvo XC60 AWD 2.5L is $2,100. This figure is based on driving 15,000 miles per year and using national average fuel prices. Of course, the actual amount you’ll spend will vary depending on your driving habits, the type of fuel you use, and local fuel prices. Drivers who primarily stick to city driving or have a lead foot should expect to exceed this figure, while those who predominantly log highway miles may be able to come in slightly under. It’s a good starting point for budgeting, but not a guaranteed expense.

Real-world expectations

While the EPA estimates provide a baseline, real-world fuel economy often diverges. XC60 owners report slightly lower figures, particularly in mixed driving conditions. Factors such as traffic congestion, aggressive acceleration, and the use of accessories like air conditioning can all impact fuel consumption. Similarly, driving in cold weather can worsen fuel economy, as can using winter tires. Drivers experience figures closer to 17-18 MPG in the city and 24-25 MPG on the highway. These numbers aren’t alarming, especially for a vehicle of this type, but they highlight the importance of considering individual driving habits when assessing fuel costs. You can find XC60 MPG across all years to get a wider data set.

How it compares

The 2016 Volvo XC60’s fuel economy is competitive, but not class-leading, when compared to other compact luxury SUVs of the era. The Acura RDX, for instance, with its 3.5L V6, offered similar performance but achieved noticeably better fuel economy, rated at 22 MPG combined. The BMW X3 xDrive28i, with its turbocharged 2.0L engine, also delivered superior fuel efficiency, achieving 24 MPG combined. Even the Audi Q5 2.0T managed 23 MPG combined. The Volvo’s slightly lower fuel economy is part of its character; a trade-off for its unique engine, distinctive styling, and reliable all-wheel-drive system for those who need it. This comparison matters to the Volvo buyer because they often weigh all factors and see the extra cost as part of the overall ownership experience, preferring Volvo’s specific blend of safety, comfort and capability over maximizing mileage.

Tips to maximize efficiency

The key to improving fuel economy in the 2016 XC60 2.5L lies in smooth and consistent driving habits. Avoid aggressive acceleration and braking, as the engine consumes more fuel when rapidly changing speeds. Anticipate traffic flow and maintain a steady pace whenever possible.

Regular maintenance is also critical. Ensure your tires are properly inflated, as underinflated tires increase rolling resistance and reduce fuel efficiency. Keep the engine well-maintained with regular oil changes and tune-ups. A clean air filter helps the engine breathe easier and operate more efficiently.

Minimize idling. Letting the engine run unnecessarily while parked or waiting in traffic wastes fuel. If you anticipate being stationary for more than a minute, it’s best to turn off the engine.

Lighten the load. Carrying unnecessary weight in the vehicle reduces fuel economy. Remove any items from the trunk or cargo area that are not essential. This includes things like golf clubs or gym equipment that are not currently being used.

Consider using cruise control on the highway. Cruise control helps maintain a consistent speed, which can improve fuel efficiency, especially on longer journeys. Be mindful of hills, however, as cruise control may downshift aggressively to maintain speed, negating some of the fuel-saving benefits. You can also review all Volvo fuel economy data.