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High CO indicates a rich mixture. So the failed emissions and the increased fuel consumption are related. Now its just a matter of "why". It is possible that the Lambda sensor has failed and is falsely telling the ECU to add fuel. Poor grounds and poor connections can cause this. I seem to remember an in-line connector somewhere that was common for corroding, causing bad Lambda readings, but I don't remember where it is off hand.
RE: Check Engien Light
