I have a 60 mile commute and am feeling the pinch..so here I am , a few years ago I owned a Peugeot 106 diesel and used to work out the MPG tank to tank - 4.55- at well over 60MPG, that was a 1.5 xud5 with a Bosch pump. I also used to use clean fresh veg oil and things were all good. Anyway time moved on veg oil went right up in price and I swapped vehicles.
I was aware the earlier 106/AX had an all alloy 1360cc xud 3 diesel engine, I was told this engine was not the best quality (but was light) so it was updated by the Xud5 which was a cast iron block. I did often wonder how good MPG could be with the 1.4 being a much lighter engine and also lighter early car. By luck the other day a friend at the garage asked me if I would buy an early 106 diesel that had engine problems,They had done the head gasket twice in the last 9 months and they decided to give up as it had failed yet again, the customer was sold another car and the 106 was for scrap, so I did.
Took the engine out and pulled it to bits to see what was up, it appears the head has been welded on its face around the gasket fire ring of one of the cylinders and then machined badly,the matching piston liner is also slightly low. So not a good start.
I have obtained an engine and intend to pull that to bits to see what condition its in.
My intention once repaired is to try to obtain 70 plus mpg.