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LOL, Are you sure you are not driving a Hummer instead of a Beetle? :p There is no way your Beetle is only getting 10mpg without some signs of drivability problems. Perhaps there is a leak in the fuel tank? Do you smell fuel at all? Is your car smoking like crazy? There have to be some symptoms to justify that type of gas mileage.
Perhaps you have some leaky injectors? Next time you prior to filling up pour in a can of "Seafoam" That stuff is great when it comes to cleaning dirty injectors. As Smileybug already mentioned a faulty O2 sensor or MAF sensor can contribute to gas mileage issues but I have never heard of a Beetle getting 10mpg. Heck a Hummer gets more than that.
Check the gas line and tank for any punctures or leaks. Take a look at the injectors and see if there is any moisture that you can detect or any fuel that you can smell. Something is definitely not right. My Beetle has 160+k miles and it still gets an average of 26mpg. Worst I have gotten was 23mpg and that was mostly city driving.

Good Luck and Keep us posted!

PS: Ditto on the Timing Belt service. If that belt goes your gas mileage problems are over. ;)
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