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Our gas mileage is much better that 34 mpg.
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While you've been able to achieve better mileage due to your driving style, tire pressure, etc., the gas version of the car can similarly achieve better mileage than the EPA's figures, were one to employ some of the same tactics.
I am not disagreeing with you, but to be fair, the EPA figures are not necessarily a good measure of comparison, unless you are prepared to use EPA for both.
As with all similar studies, I believe most authors fail to realize that there isn't a gas Camry that is 100% equivalent to the hybrid version (with the obvious exception of the hybrid system). Accordingly, they might not be comparing apples to apples. One study took a 4 cyl. gas and compared it to the 4 cyl hybrid, mistakenly assuming that the two cars were equivalent. I don't believe that they are, since the author failed to take into account the horsepower pickup from the battery, etc.