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Fuel economy of parallel hybrid electric vehicles is affected by both the torque split ratio and the vehicle velocity. To optimally schedule both variables, information about the surrounding traffic is necessary, but may be made available through telemetry. Consequently, in this paper, a nonlinear model predictive control algorithm is proposed for the vehicle control system to maximise fuel economy while satisfying constraints on battery state of charge, relative position and vehicle performance. Different scenarios are considered including allowing and disallowing overtaking; various hard and soft constraints; and computational aspects of the solution. The optimal control signal vector was found to be characterised by smooth changes in velocity and increases in the motor to engine power ratio as the vehicle accelerates. It was found that using feedforward information about traffic flow in the range of five to fifteen seconds has the potential for significant fuel savings over two urban drive cycles.