A combined 26 MPG won’t win any hypermiling contests, but it’s a reasonable compromise for the 2018 Volvo XC60 AWD PHEV. This plug-in hybrid is designed for buyers who value both efficiency and a premium driving experience, and are willing to pay extra to get it. They prioritize Scandinavian design, advanced safety features, and electric driving, even if absolute fuel economy isn’t their only focus.

City and highway performance

The XC60 PHEV’s EPA ratings show a surprising consistency between city and highway driving. Both are rated at 26 MPG, and the highway figure climbs slightly to 28 MPG. This near-identical performance reflects the integration of the gasoline engine and electric motor. In city driving the electric motor can contribute significantly, improving economy, whereas the highway figure will typically depend on the battery charge, speeds, and other factors. The engine works steadily during highway miles, and the all-wheel-drive system also impacts fuel consumption.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2018 Volvo XC60 AWD PHEV at $2,250. This is based on driving 15,000 miles per year and using national average fuel prices. Individual costs will vary depending on driving habits and local fuel prices, but this provides a benchmark for comparing the XC60 PHEV to other vehicles. This assumes a certain amount of driving on gasoline, because electric range is limited.

Real-world expectations

EPA estimates provide a baseline, but real-world fuel economy for the XC60 PHEV depends on driving habits and charging frequency. Drivers who plug in often and use the electric range for shorter trips will see much better fuel economy than those who rely on the gasoline engine. Cold weather and aggressive driving can affect real-world fuel economy.

How it compares

Compared to other compact luxury SUVs, the XC60 PHEV’s fuel economy is mid-pack. A non-hybrid, all-wheel-drive competitor like the BMW X3 xDrive30i achieves around 24 MPG combined. a Similarly equipped Audi Q5 gets around 25 MPG combined. Some non-hybrid models might do better on the highway, but they lack the XC60’s electric driving for local trips. The Lexus NX 300h hybrid achieves a much better 31 MPG Combined, but with reduced overall performance and no plug-in capability.

Tips to maximize efficiency

Take advantage of the plug-in hybrid system. Plug in whenever possible, even briefly, to maximize electric driving range. This will reduce your reliance on gasoline, particularly for daily commutes.

In city driving, use the “Pure” drive mode. This prioritizes all-electric operation, allowing emissions-free travel while the battery has charge. Learn the different drive modes and how they impact fuel consumption.

Anticipate traffic flow. Smooth acceleration and gentle braking improve fuel economy, extend brake pad life, and improve the driving experience. Volvo’s Pilot Assist system can help maintain speed and following distance on the highway.

Keep your tires properly inflated. Underinflated tires increase rolling resistance, which lowers fuel economy. Check your tire pressure regularly and inflate them to the levels on the driver’s side doorjamb. Cold weather can drastically influence tire pressures as well.

Avoid unnecessary weight, so remove extra cargo from the vehicle. A lighter car is more efficient. See XC60 MPG across all years to learn from the experience of other owners. For all Volvo fuel economy data, see our brand hub.