Doing some rough calculations based on the current average prices for petrol and diesel, going from a 37mpg petrol to a 50mpg diesel over 11k miles will save you around £380 per year, circa £7.30 per week.
It is easy to forget how much other ’running costs’ there are than mpg. If something goes wrong on a diesel engine, it will cost significantly more to put right than a naturally aspirated petrol. Any fuel savings can and will be completely wiped out and then some!.
Given your budget is so low, and assuming your current car is reliable, I’d just keep that until such times as your budget allows for something much younger.
As has been mentioned, the 1.6 diesel in the Fiesta (as well as various other Fords, Citroens and Peugeots), has a somewhat chequered record on reliability. The engine in the Megane is fairly reliable, but all things considered, the rest of the car probably won’t be!.
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