With my lift, 35" tires and 4.88 gears I get almost 18mpg in the city. I don't do much freeway driving so I cannot give a good answer on my freeway mileage.
I wouldn't do propane unless it's a trail dedicated rig. Most people do a propane conversion because the gas tank is pressurized. With propane, being on extreme angles you don't have to worry about your gas pickup tube being in the gasoline.