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Your friend is half right. You CAN insert (not remove) a 15A fuse into the FWD slot under the hood and deactivate the center differential, turning the car into a front wheel drive. However, this only applies to vehicles with automatic transmissions, and it will not yield better gas mileage.

The purpose of this feature is to allow the vehicle to be towed with the rear wheels on the ground, or to use a spare tire of a different overall diameter than the other 3. It is designed to be used temporarily.

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Q: A friend of mine told me that if I remove the AWD fuse in my '07 subaru forrester I will get better gas milage Is the true and where is the fuse located?
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