25 MPG combined won’t win any fuel efficiency awards, but for the 2021 Jaguar XE P300 AWD, it’s a reasonable trade-off for the performance and all-weather capability that define this compact luxury sport sedan. The XE buyer probably isn’t prioritizing ultimate economy above all else. They want a stylish, engaging car with a distinctive character, and the P300 delivers that with confidence, accepting the fuel consumption as part of the ownership experience.

City and highway performance

The EPA estimates the 2021 Jaguar XE P300 AWD achieves 22 MPG in the city and 30 MPG on the highway. The city figure reflects the engine’s tendency to use more fuel during stop-and-go driving, a common scenario for XE drivers navigating urban environments. The highway number showcases the efficiency of the 2.0L turbocharged engine and 8-speed automatic transmission at steady cruising speeds. Someone who commutes primarily by highway will see fuel economy closer to 30 MPG, and that might be a major part of their reasoning for buying it.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2021 Jaguar XE P300 AWD at $2,300 per year. This figure is based on driving 15,000 miles annually and using national average fuel prices. Individual fuel costs will vary depending on local fuel prices, driving habits, and the type of fuel used. For example, someone who drives aggressively or lives in an area with higher gas prices could easily exceed this estimate. A driver who prioritizes smooth acceleration and consistent speeds may find they use slightly less.

Real-world expectations

While the EPA provides a standardized testing methodology, real-world fuel economy often differs. Factors such as traffic conditions, driving style, and environmental factors like wind and temperature can all significantly impact fuel consumption. An aggressive driving style, characterized by frequent hard acceleration and braking, will inevitably decrease fuel economy. Likewise, operating the XE in extremely cold weather can reduce MPG as the engine works harder to maintain optimal operating temperature. The AWD system, constantly ready to send power to all four wheels, also impacts fuel economy compared to a RWD version.

How it compares

The 2021 Jaguar XE P300 AWD’s fuel economy sits roughly in the middle of its competitive set. The BMW 330i xDrive, for example, is rated at 28 MPG combined, outperforming the XE by a few miles per gallon. The Mercedes-Benz C300 4MATIC achieves a similar 26 MPG combined. On the other hand, the Alfa Romeo Giulia Q4, with its focus on performance and driving dynamics, lands at 26 MPG. This difference matters to the XE buyer because it highlights the compromises inherent in choosing a uniquely styled and powerful sport sedan; efficiency is not the top priority, character and performance are.

Looking at XE MPG across all years, the 2021 P300’s numbers are fairly consistent with previous iterations of this powertrain. Considering all Jaguar fuel economy data, the XE’s numbers also highlight the difference between a sports sedan and a larger SUV like the F-Pace.

Tips to maximize efficiency

Avoid aggressive driving habits to conserve fuel. Rapid acceleration and hard braking consume significantly more fuel than smooth, gradual inputs. Anticipate traffic flow and maintain a steady pace whenever possible. This is especially important with the XE’s responsive engine, as its eager nature encourages enthusiastic driving that hurts fuel economy.

Ensure the tires are properly inflated to the recommended pressure. Underinflated tires increase rolling resistance, reducing fuel efficiency. Regularly check tire pressure, especially during seasonal temperature changes, which can affect tire pressure. Maintaining the proper pressure will also improve handling and tire wear.

Minimize idling time whenever possible. Excessive idling wastes fuel and contributes to increased emissions. If you anticipate stopping for more than a minute or two, turn off the engine. The XE’s stop/start system helps with this, but it’s not foolproof and sometimes allows the engine to run longer than necessary.

Use cruise control on the highway to maintain a consistent speed and optimize fuel consumption. Cruise control helps prevent unintentional speed fluctuations that can reduce fuel economy. Be mindful of terrain changes and adjust your speed accordingly to maximize efficiency. Also, avoid using Sport mode unless you actually want to experience peak performance, as it alters the shift points and holds lower gears longer, decreasing economy.