@Payam
1st gear gave me good torque but it was in the third that I lagged behind an accent on road for a while but plopped into 4th and could pass it easily.

(Or maybe he slowed down to check the Palio's behind).
FE as told by the sales guy would be around 11 in city with the ac, around 13 without a/c and 15/16 on highways. He said some customers reported about 17 on long trips where much time is spent in 4th and 5th.