28 MPG combined won’t win any fuel economy awards, but for the 2018 Jaguar XE 2.0L 4-cylinder, it’s a reasonable balance between sport and practicality. This isn’t a Prius competitor; it’s a compact luxury sedan designed for drivers who appreciate responsive handling, elegant styling, and British flair. Its target buyer prioritizes driving engagement and distinctive design over fuel efficiency, accepting mid-pack economy.

City and highway performance

The EPA estimates of 25 MPG in the city and 34 MPG on the highway reflect the XE’s drivetrain. The 2.0L turbocharged inline-four delivers a punchy 247 horsepower, plenty for confident acceleration and highway merging. The eight-speed automatic transmission (S8) keeps the engine at its best, contributing to decent fuel economy.

The city figure suffers due to stop-and-go traffic and the engine’s need for boost to deliver its power. The highway number is more respectable, reflecting the engine’s ability to cruise efficiently at steady speeds. It’s a car that rewards smooth driving, but also encourages you to use the power for overtaking.

Annual fuel cost

According to the EPA, the estimated annual fuel cost for the 2018 Jaguar XE 2.0L 4-cylinder is $2,050. This figure is based on driving 15,000 miles per year and using national average fuel prices.

Individual costs will vary depending on personal driving habits and local fuel prices. Drivers who spend more time in rush hour traffic will likely see a higher annual fuel bill, while those who predominantly cruise on the highway may find their costs slightly lower. Regardless of usage, $2,050 is what the EPA has calculated based on their testing.

Real-world expectations

While the EPA estimates provide a benchmark, your mileage will vary. Aggressive driving, frequent short trips, and carrying heavy loads will negatively impact fuel economy.

Conscientious driving, proper tire inflation, and regular maintenance can help you get closer to the EPA numbers. Many XE owners find that achieving the 34 MPG highway rating is realistic on longer trips, but the 25 MPG city figure can be difficult to attain in congested urban environments. Consider these factors when budgeting for fuel costs.

How it compares

In the competitive compact luxury sedan segment, the 2018 Jaguar XE’s fuel economy is in the middle. The BMW 330i, for example, is rated at 28 MPG combined (24 city/34 highway), mirroring the XE’s numbers. The Mercedes-Benz C300 achieves a similar 27 MPG combined (24 city/34 highway). Some competitors, such as the Lexus IS 300, fall slightly behind at 24 MPG combined.

While these differences may seem marginal, they can add up. The XE’s numbers are acceptable, but not a primary reason for choosing it. Drivers who prioritize fuel efficiency should compare with hybrid alternatives, such as a Lexus ES 300h, which provides near 44 MPG in combined driving. To see all Jaguar fuel economy data and compare various models, review the EPA ratings. You can also specifically review XE MPG across all years.

Tips to maximize efficiency

Avoid aggressive acceleration and hard braking. The XE’s turbocharged engine is responsive, frequent bursts of power will reduce fuel economy. Anticipate traffic flow and maintain a steady speed.

Ensure your tires are properly inflated. Underinflated tires increase rolling resistance, which forces the engine to work harder. Check your tire pressure and inflate them to the manufacturer’s recommended specifications on the doorjamb sticker.

Reduce unnecessary weight. Extra cargo in the trunk or back seat can negatively impact fuel economy. Remove any items that are not essential.

Consider using the XE’s selectable driving modes. Engaging the “Eco” or “Comfort” mode will result in more conservative throttle response and earlier upshifts, optimizing fuel efficiency within city limits.

Keep up with regular maintenance. A well-maintained engine runs more efficiently. Follow the manufacturer’s recommended maintenance schedule, including oil changes, air filter replacements, and spark plug replacements.