First and only thought at this point is that your upstream O2 sensor has gone t.u. Your '99 only has two O2 sensors and only the upstream O2 sensor can affect mpg. The downstream O2 sensor is mounted on the catalytic converter and its sole job is to monitor the catalytic converter, is has nothing to do with the engine.
If you decide to replace the upstream O2 sensor, make sure to ONLY go with an NTK or NGK (both are the same company). Avoid Bosch O2 sensors in our Jeeps, they don't work properly for long.
This is the one I'd get...
https://www.amazon.com/dp/B001PNCKV8/?tag=wranglerorg-20
There would be no mpg or performance benefit gained by replacing the downstream O2 sensor too.