Smaller wheels are more fuel efficient due to reduced rotational inertia and less resistance from the road. Smaller wheels also have a reduced circumference, which means the engine does not have to rotate as many times to cover the same distance. This can lead to improved acceleration and fuel efficiency.
However, it's important to note that the impact of wheel size on fuel consumption can be influenced by several other factors, such as the vehicle's overall design, weight, engine efficiency, and driving conditions.