Weather it is in W or S or C or W for the alter models, it won't really make a difference. W is essentially a 2nd gear start with different reverse ratio.
IMO, the driver is the one that effects MPG. You need to look and plan as far ahead as you can and try and avoid the brakes and coming to a standstill where possible.
My 220CDI W203 has averaged 53+ MPG over the last 3k miles. That is mixed driving including commuting to work etc. Forgot to say 99.9% of the time mine is in S.
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