I am a user of Fiat Uno(Petrol). When Palio came in the market, I thought that I would give up Uno because of its very low average (just 8-9 in AC)and also because of the maintainence cost being too high. My friend bought the car and I tried driving it. Though it was a good experience driving Fiat Palio, I found out that it also gives the same problem as Uno gives. Its average came to just 8-9 kms per litre which is too low for a car like Palio. In comparison to Fiat Palio, I found that Santro was much much better. Its maintainence is not so much costly as Fiats Palio is. Again it gives an average of 11-12(in AC) kms per litre. My friends car which is a Santro gives him a average of 13-14 kms per litre (in AC) which is much better than Palio.
Again I recommend you to go for a Santro which is a very good car. Its AC is also very powerful and it is also very good technically. I am saying this from my personal experience. Its service is also very prompt and very good.
I think Santro is the best car in the small car segment.