25 MPG combined isn’t going to win any fuel economy awards, but it’s a perfectly reasonable figure for the 2023 Volvo XC60 B5 AWD. It’s a number acceptable to buyers seeking this blend of luxury, safety, and all-weather confidence. These buyers prioritize image and reliability over outright fuel savings, although nobody actively wants to spend more at the pump.

City and highway performance

The official EPA numbers reveal 23 MPG in the city and 29 MPG on the highway. The city number reflects the stop-and-go driving that this vehicle will encounter in suburban environments. The XC60 is the quintessential suburban luxury SUV. The highway number is a little more optimistic.

While achieving 29 MPG on a long road trip is possible, maintaining that constantly in real-world highway scenarios often proves challenging due to speed fluctuations and aerodynamic drag. The turbocharged and supercharged 2.0L four-cylinder engine, paired with the eight-speed automatic transmission, is a refined piece of engineering but still needs to work to move this fairly substantial vehicle.

Annual fuel cost

According to the EPA, the estimated annual fuel cost for the 2023 Volvo XC60 B5 AWD is $2,300. This figure is calculated assuming 15,000 miles of driving per year, with fuel prices based on the national average for premium unleaded gasoline. Your actual fuel costs will vary if you drive significantly more or less than 15,000 miles annually, or if fuel prices in your area are higher or lower than the national average.

The EPA’s estimate presumes consistent driving habits. Aggressive acceleration and braking will reduce your MPG and consequently increase your yearly spending.

Real-world expectations

Don’t be surprised if you see slightly lower MPG numbers in real-world conditions than the EPA estimates. The XC60 B5 AWD’s combination of all-wheel drive, its hefty curb weight, and the prevalence of shorter journeys often lead to observed fuel economy in the low to mid-20s.

Driving style also plays a significant factor. Gentle acceleration and consistent speeds yield better results than frequent bursts of power for overtaking or navigating congested city streets. If you’re primarily driving short distances in urban areas, expect your MPG to hover closer to the EPA’s city rating than the combined rating.

How it compares

The XC60 B5 AWD’s fuel economy positions it competitively within its segment. The BMW X3 xDrive30i, for example, achieves a combined 25 MPG, matching the Volvo exactly. The Lexus NX 350 AWD is rated at 25 MPG combined, suggesting a very similar ownership experience at the pump.

A more fuel-conscious buyer might consider the Acura RDX, which lands at 23 MPG combined despite offering comparable space and features. For those prioritizing fuel economy above all else, the plug-in hybrid XC60 Recharge offers significantly improved MPG and the ability to drive short distances on electric power alone. You can explore XC60 MPG across all years to see how this model has evolved. For a broader perspective, see all Volvo fuel economy data.

Tips to maximize efficiency

Pay attention to tire pressure. Ensuring your tires are properly inflated reduces rolling resistance, which directly translates to improved fuel economy and better handling. Check your tire pressure regularly, especially during seasonal temperature changes.

Avoid aggressive driving habits. Rapid acceleration and hard braking consume significantly more fuel. Smooth, gentle acceleration and anticipating traffic flow to avoid unnecessary braking will make a noticeable difference.

Consider using “Eco” mode, if equipped. Many modern Volvo models feature selectable driving modes that optimize engine and transmission settings for improved MPG. While it might slightly reduce performance, the fuel savings can be worthwhile, especially during longer trips.

Minimize idling. If you anticipate stopping for more than a few seconds, turn off the engine. Modern engines are designed to restart quickly and efficiently, and excessive idling wastes fuel and increases emissions.

Lighten the load. Remove any unnecessary items from the vehicle. Extra weight increases fuel consumption, so clearing out clutter from the trunk or cargo area can contribute to better MPG, especially on longer drives.