Welcome to TRS
Lack of power and low MPG go hand in hand.
If you have less power you push down on the gas pedal more, so.........MPG goes down
A few things to look for first, and I am assuming engine is running perfectly, just no power, so idle is smooth and there is no pinging or knocking after warm up.
On cold starts does the idle RPM go high, and then slowly go down over the next few minutes as engine warms up.
That's the IAC Valve working
After engine is warmed up, unplug the IAC valve while engine is idling, RPMs should drop to 500, or engine may even stall, either is good it means no vacuum leak.
If RPMs stay high, 700+, the you do have a leak.
Test for a leaking fuel injector.
Press gas pedal down to the floor and hold it down all the way.
Turn key on
Try to start engine, holding gas pedal down
It should NOT start, it should NOT fire at all, just spin, fuel injectors are shut off
If engine starts then you could have a leaking injector
OR........your throttle cable has stretched and you no longer get full throttle, lol.
Look here:
http://www.therangerstation.com/Magazine/Summer06/throttlecablemod.htm
Throttle cable has stretched over time and you no longer get full throttle, this mod shortens the cable back to factory spec, just a couple of zap straps.
After making sure throttle is wide open using gas pedal repeat test, test can't work unless computer sees wide open throttle before starting engine, that is what shuts off fuel injectors.
As soon as gas pedal is released or engine RPMs are above 400, computer restarts injectors.
This is called "Clear Flooded Engine Routine" it is in all fuel injection computers
Could be timing belt is at the end of its life and valve/piston timing is off a bit, this causes lower compression so lower power.
When was the last time belt was changed?
Do you have a compression gauge?
2.5l has 9.1:1 compression ratio, that should be about 163psi at sea level to 2,000ft
If you are in the 140psi range then belt needs to be replaced
And just to clarify, on a 4cyl engine there is only Bank 1, no Bank 2(that's for V6/V8 engines), but you do have two O2 sensors
Bank 1 sensor 1 is the upstream sensor, the one you replaced, this one is used for air/fuel mix fine tuning
Bank 1 sensor 2 is the downstream sensor, the one after the Cat Converter, this one tests it Cat is working, it won't effect short term fuel adjustments