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Foresters (especially 1st Gens, 98-02) are known for poor fuel economy. They are AWD, which means the engine is turning twice as many wheels as on most cars. This accounts for some higher fuel consumption.
Another reason is the vehicle's poor aerodynamic coefficient. The Forester is basically identical to an Impreza, but the 98 Impreza is rated at 21 mpg, while the Forester is rated at only 20 mpg. That's 5% lower just due to the shape. (Source: www.fueleconomy.gov)

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