Tat,
in many cases where there is a drop off in performance and a rough idle, it is possible that the choke is partially closed all the time. It is one of the weaknesses to the hitachi carb that comes with the 1.3 engines. There is a little wax pellet that will melt as the water in the cooling system heats up, causing the choke to open up all the way, if the choke isnt adjusted right, then it wont open wide and will result in more fuel consumption.
Another possibility to less performance depends on where you live...in Seattle WA they use additives in the fuel during the winter months so vehicles will run "cleaner" and it does affect my mileage, but not that bad.
If you really want to keep your 1.3, I would recommend trying an after market carb, such as a weber. One of my rigs has one and it runs great without all the hassles that the hitachi seems to have,...it has better performance even with the oversized tires and lift kit on the rig,...I also have a weber for my daily driver, but Ive been lazy installing it because I really could use a new engine in it and lack motivation to install it at this time.
the best way to improve your performance, is with a new carb and new exhaust system,...something like a thorley header and 2.5 inch exhaust system, and a weber carb.
that combo would get you somewhere around 100 hp from a 65 hp engine. And, you can also install a high performance cam, like the isky cam, which would also boost performance.
Nothing wrong with the 1.3, its just a puny engine is all,....I would love to drop a vw diesel into my daily driver,...50+ MPG and great low end torque. 500 miles to the tank and only filling up once a week for work,...NICE....