That is truly remarkable when you consider that the only way to increase torque and power output on a unmodified diesel engine, is to inject more fuel. 20,000 a year is 384.61 miles per week. £110.00 is at todays prices, 81.90 litres of fuel or 17.92gallons. 384.61 divide 17.92 is in round figures 21.45 miles per gallon. Which is over 3 mph worst than, according to your figures, could possibly be your lowest figure. Think your fuel computor is broken.
However, 12 months ago fuel prices were not where they are today, so the maths doesn't work.
I have run 3 diesel cars with fuel mappings and you are correct, what they do is wind up the turbo and remap the injection.
Around town this will mean a lower MPG is acheived, and I think you are being kind. On an X5 previously doing about 26MPG for town type driving I can see 20.5 without trying. However, long and more importantly smooth journeys the turbo works less time as it gets you to and back up to speed more quickly, and therefore has longer periods of inactivity or low activity to maintain a speed. I have seen 38.5 mpg on the dial, and calculated it to be a real work 34.2 mpg based on Brim to Brim filling of 92.5 litres for 703 miles achieved.
I used to commute 160 miles a day and saw a regular change form 590 to a tank to 650, or two gallons worth basically.
They do work......however
I am potentially facing a bill for a new gearbox, as the increased torque has knackered something in the gearbox and I get a tremendous thump on kick down.
On the 320d I had before, I ran it for 5 years and 212k miles. It ate a clutch every 75000 miles wheras BMW recon they are good for 100k. I can't have been treating the clutch badly as you can only do that amount of miles annually in 6th running on the motorway, so it must have been working harder.
The other one got nicked 4 months after I had it chipped so cant comment on the reliability, but the fuel figures were similar for the time I had it. I hope it blew up......
So, in conclusion. If you do lots of motorway miles and don't thrash it, they do increase the MPG. This comes potentially at a cost to the mechanical components.
I am facing a new gearbox on a 54 plate X5 motorwar car with 85k miles on it and I have 2 friends with Disco's which have knackered cylinder heads due to overheating while towing, and the garage has said they do if they are chipped.
I will not be chipping my new (2001) P38, as I am sure it has probably done enough already and I want the bits to last.
If I have to get another reasonably new mile muncher I will do it without hesitation, but for economy and will try not to thrash it. Honestly, I will.