Q: Help to diagnose low MPG and high oil consumption.

A few different things may contribute to oil consumption and poor fuel economy. Typically, high oil consumption is related to worn piston rings or worn out valve guide seals. In your case, it is unlikely this is related to worn piston rings as indicated by the proper compression you have already tested for.

A clogged or failing catalytic converter can cause the vehicle to have poor fuel economy. As you know, the catalytic converter converts toxic exhaust gases into less harmful pollutants that are suitable to be expelled into the atmosphere. When this is clogged, this causes these gases to be backed up into the exhaust system not allowing the engine to breathe properly. When this happens, the engine is forced to work much harder to expel these gases. This often results in the engine bogging down, hesitating, shaking and causing very poor fuel economy. A clogged or dirty EGR valve may also cause poor fuel mileage. The EGR valve is a small component designed to allow the flow of exhaust gases into the intake manifold in controlled amounts. Whenever you start the engine, the valve comes alive and waits in a closed position, blocking the flow of exhaust gases. Once the engine reaches operating temperature and speed increases, the valve, either through vacuum or electronic control will gradually open, allowing burned exhaust gases to enter and combine with the air-fuel mixture inside the combustion chamber. When the EGR valve is clogged or dirty, as they are prone to, it may not function properly causing the engine to idle rough, stall at idle speeds, cause the car to get poor fuel mileage, or emit a strong smell of fuel due to excess hydrocarbons which also results in failing emissions tests. I would recommend checking the above to determine what may be causing your poor fuel mileage.