I am resigned to 16 mpg in my town which is disappointing, but normal. I do get much better on the highway like you. Combined city/highway driving is rated at 18 mpg using premium gas for our cars. So, city-only driving is going to be much less. 11 mpg is especially low and might be attributed to your route and driving habits. I would have everything checked out on VIDA or OBD II diagnostics. Try a different premium gas and get good tires and keep them at optimal pressure. If you have 4C transmission, use Comfort mode and never Advanced mode.

 

Yeah. That's abnormally low for the 3.2. I know these are heavy cars and all but sheesh! I have the heavier XC70 3.2 and I'd say I average around 18-20 city and maybe around 24 highway (gotten as much as 26 on a good day). I remember the manual saying something like the car being able to take Regular 87, but for optimum fuel economy and performance to use Premium. I've done tests with both and yup. While I can't tell much difference with power, I DO notice a pretty decent difference in MPG. I definitely take a few miles per gallon hit when using regular, so I stick with premium now. Also, x2 what blindkarma said above about your tire pressure. Check that for sure.

Also check air filter and replace if dirty - I typically use Volvo's, Mann, and Mahle. All good. Went with a few random ones from auto parts chain stores and they seemed noticeably worse so I swapped them back out. Don't know if it was just placebo or something else though. Haha.

Lastly, at 90K, you could be coming up on spark plugs so might as well swap 'em out if they haven't been done. EASY job on the 3.2. I've stuck with Volvo branded plugs and they've served me well. Cheap enough for a 6-pack at FCP Euro but make sure you match up to your vehicle to ensure you're getting the correct ones as they're pre-gapped and all. I don't wait til the 100K. They're SO easy that I just do them about every 50K and it seems to restore some pep and maybe a mile or 2 per gallon. Especially this last round when I swapped out all the coil packs (again) to go with the fresh plugs.

 

That is too low for the 3.2. My V8 shows about 14-15 mpg in town. Air pressure in the tires ok?

 

If your average speed is low, and you're doing a lot of low speed stop and go, 11 wouldn't be too far out of question for what the computers thinks you're getting. That being said, have you done it the old fashion way, where you calculate miles divided by gallons to get your actual mpg? Car computers aren't ever really accurate, and at low speeds it might be getting skewed more than it should

 

I use Fuelly to keep track of my MPG. The car is heavy to stop and go city driving will kill MPG.