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Are your fuel log reports for propane or gasoline? I see one entry that calls out running on gas but most of them don't do that.
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As far as I know, in most markets ALL cars converted to run on LPG are dual-fuel (or bi-fuel), which means they can run on either gasoline or a propane/butane mixture which is Liquified Petroleum Gas.
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The T5 engine isn't known to be very fuel efficient, and the newer Volvo's have quite good aerodynamics stock.
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I'll second Joris' statement, that engine is nice but not widely regarded as a penny pincher. What you have there is pretty serious power for shoving an upscale compact executive saloon down the road at a good clip, NOT the usual paradigm for a highly economical car.
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All very true, and I did realise when I bought the car that it was never going to be a fuel-sipper. I previously owned an LPG-converted 1.7l 1992 Volvo 460 (I believe they where never sold in the Americas). On LPG, I could get 27.2 mpg (US) easily, but I missed the lack of grunt that allowed me to stay in top gear all the time.
So following that logic I bought this S60, due to its low-range torque, but mainly because it was dirt-cheap (small caveat here: in Portugal, most cars sold today are either diesels or very small-displacement petrol engines, and in 2008 when I got the car, everyone was trying to flog their old big-engined gasoline-drinkers, and I was sort of broke, so I bought this car for a steal). And I found it to work. Full of people and air-con on, I can get 26-27 mpg (US) or better on long journeys. Unfortunately I don't often have a chance to repeat these drives, so the numbers you see in the fuel log are a fair balance of mixed driving.
But I'm happy with these figures because it's pretty interesting to squeeze some seriously frugal mpg numbers out of such a car.
Thanks, everyone!