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I have a Ranger with the same engine and I feel your pain. It is underpowered and sucks up the gas especially in city driving. It also seems to be adversely affected by oxygenated fuels or fuel with alcohol in it. That being said, I have been able to increase my mpg on my commute from 17.5 to about 20.5 without any external mods. I try to time the lights, I coast in neutral, and I shut off the engine at lights (if it is below 90). I haven't increased my tire pressure because my tires are jumpy enough already.
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