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Magnetic Treatment for Fuel Economy
In 1991, in the UK, the Department of Trade and Industry's testing laboratory at Warren Spring tested a magnetic device for improving fuel economy on a Vauxhall Cavalier and found "fuel consumption improved, power increased and emissions reduced. A Volvo F10 truck tested for particulate smoke emissions showed a decrease of 15%."
Defender

In July 1999, Landrover Monthly magazine tested a magnetic device which gave them a 15% improvement in mpg on a 4.2 V8 Defender.

You will find articles on fuel economy in the Sceptics page and the Experts page

How does it work?

No-one knows.   One theory is that the magnetic treatment on the fuel line causes a more complete mix of fuel and air in the combustion chamber.   Professor Kronenberg on the Experts page suggests that the fuel may be 'refined' further by the magnetic field 're-cracking'  some of the larger fuel molecules so that they can burn more completely.

Does it just work on petrol?

It seems to work on any fuel that will flow through a pipe.   Petrol, diesel, light and heavy oil, natural gas, LPG, propane, butane.  Some salesmen use butane lighters to demonstrate the effects of magnetic treatment. 

I've heard reports that in power stations using a coal slurry, the injected steam can be magnetically treated to give a similar fuel economy.

Does the same device work on vehicles and boilers?

Yes, and no.  When the vehicle devices were first used on heating boilers and burners, some results were disappointing.   Then it was noticed that some results were disappointing on stationary test bed engines as well.  It seems that the vibration or 'jiggle' from movement along a road made the magnets more effective.   So most designs for boilers have several poles in close proximity to simulate that 'jiggle' or rapid change in field experienced by road vehicles. 

And boiler units seem to work fine on vehicles.

Is it easy to fit?

Yes, just apply as many as required to the vehicle or boiler fuel line and strap them in position.

However, there is a problem with modern computer-controlled-ignition vehicles.   These computers 'sniff' the exhaust and adjust the fuel/air mixture to produce an emissions level that matches the level the manufacturer decided was the level for best performance.

Now the magnetic devices have been shown to reduce the levels of emissions, so the computer would then detune the engine to restore the emissions to the original level.   So fitting a magnetic device could degrade the performance of the vehicle so that there is no overall improvement.

However, there is a solution.   If the magnetic device is fitted while the engine is hot and running, the computer sees it as a natural change and adjusts to compensate.   So you can get lower emissions and higher performance on computer-controlled-ignition vehicles.

How do you know it is working?

Many vehicles have MPG meters and economies can be seen straight away.   Many suppliers will provide charts to help customers calculate economies.   When I tried it, I found a noticeable increase in bottom end power. 

But some suppliers will not sell to commercial installations unless they have a good testing procedure and keep good enough records to demonstrate how effective the devices are. 

Is it worth trying?

Only if you can get a good money back guarantee.   There are devices on sale that do not work well.