only getting about 12 MPG------------ seems too low to me.
THAT is the understatement of the year.
A reality check. When I first bought my '70 440sixpack RR, stock except for Edlebrock/ Holley 800 DP, cyclone headers, hang-on air, and 3.54 rear gear, and a LOT bigger 'n heavier than your car it would get.......
13.8 at '70 mph, and I wasn't all that careful driving it
One of those little slants in good shape should EASILY get over 18-19 on the highway.
FIRST thing to do (you have a GPS?) is check the speedo
Second thing to do is take a real good look at your driving habits, and how much driving is slow/ in town?
Third, would be to go for a thorough diagnostic tuneup. By that I mean do a compression / leak down test. Check everything you can think of, like is the exhaust restricted/ crimped, is the heat riser butterfly stuck?
How does the carb act? What does the tailpipe plugs look like? Oil consumption?
Even with small tires---many of these CAME with small tires, they had pretty high geared rear axles.