The 2018 Jaguar XE 2.0L (296 hp) gets 27 MPG combined. This won’t win any hypermiling contests, but ultimate fuel efficiency isn’t the main point of owning this sporty sedan. Buyers prioritize the XE’s sharp handling, styling, and powerful engine. It’s a trade-off they accept for a taste of Jaguar in their daily drive.

City and highway performance

EPA estimates for the 2018 Jaguar XE 2.0L (296 hp) break down to 24 MPG in the city and 32 MPG on the highway. The city figure reflects stop-and-go traffic, where the XE’s responsive automatic transmission works and the engine idles more. The highway MPG demonstrates that, at cruising speed, the XE’s efficient engine and aerodynamic design become apparent. However, these are laboratory figures, and aggressive driving will lower these numbers.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2018 Jaguar XE 2.0L (296 hp) will be around $2,150. This is based on driving 15,000 miles per year, with a 55/45 split between city and highway driving, and national average fuel prices at the time of calculation. Individual costs will vary depending on driving habits and local fuel prices, but it provides a useful benchmark for comparing fuel expenses with other vehicles. Potential owners should take this number seriously. The XE provides genuine driving pleasure, and the cost of fueling that fun needs to be factored into the ownership.

Real-world expectations

EPA estimates provide a good starting point, but real-world fuel economy for the 2018 Jaguar XE 2.0L (296 hp) will vary based on driving style and conditions. Drivers who accelerate quickly or frequently drive in heavy traffic should expect lower numbers. Conversely, those who prioritize smooth acceleration, maintain speed on the highway, and minimize idling may see results closer to, or even better than, the EPA estimates. Weather, tire inflation, and even aftermarket modifications influence the final number at the fuel pump.

How it compares

The 2018 Jaguar XE 2.0L (296 hp) sits in the middle of the compact luxury sedan segment for fuel economy. A similarly equipped 2018 BMW 330i with its 2.0L turbo offers around 28 MPG combined. A 2018 Audi A4 2.0T Quattro manages approximately 27 MPG combined. The Mercedes-Benz C300 from the same year yields a combined MPG of around 27 MPG. These alternatives offer slightly better numbers, but the XE’s appeal is in its character. Someone choosing the Jaguar likely prioritizes its unique design and handling.

If fuel economy is important, other options exist. A Lexus IS 300h hybrid significantly outperforms the XE, boasting combined figures in the low 40s, but the Lexus lacks the Jaguar’s sporty driving dynamics. You can explore all Jaguar fuel economy data to compare across the brand’s lineup, or investigate XE MPG across all years to compare against other model years.

Tips to maximize efficiency

The key to maximizing fuel economy in the 2018 Jaguar XE 2.0L (296 hp) is adopting smooth and consistent driving. Avoid rapid acceleration and hard braking, opting for gradual inputs. This will help the engine operate efficiently and reduce fuel consumption.

Keep your tires inflated to the recommended pressure, which can be found on a sticker inside the driver’s side door jamb. Underinflated tires increase rolling resistance, forcing the engine to work harder and decreasing fuel economy. Check tire pressure regularly, especially with changing temperatures.

Minimize idling whenever possible. If you anticipate being stopped for more than a minute or two, turn off the engine. Modern cars like the XE restart quickly and efficiently, and excessive idling wastes fuel and contributes to emissions.

Use the XE’s driving modes. Select the “Eco” mode (if equipped) when cruising on the highway or driving in less demanding situations. This mode adjusts engine and transmission settings to prioritize fuel efficiency. Switch back to a more engaging mode when you want to tap into the XE’s sporty character.