Long term control of the AFR (Air/Fuel Ratio) of spark ignition engines is currently accomplished with a selvoscillating PI control loop. Because of the intake/exhaust time delay, the oscillation frequency and hence bandwidth of this loop is small. This paper describes a new approach to the design of this control loop using a novel observer system. In this way the bandwidth of this important loop is increased by a factor of 2 - 6 times, leading to more accurate overall AFR control. Moreover the observer approach is so robust and allows such feedback levels that it reduces significantly the accuracy required in the calibration of the base fuel control system with which it is be used. It can be used with either conventional- or advanced observer based- base fuel strategies.