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Is that highway, city, average or what? If that's city traffic miles, it's not that far off. I get from 18 - 20 MPG in my '00 GS300, depending on how I drive. I get about 16 in the summer with the A/C on constantly. I get mid-twenties on the highway. Exceptional gas mileage is not a strong point with these cars.
i get 18.5 on average with AC running on my GS400. I think the 300 should average 1mpg more than the 400, which should be around 19. 16 sounds too low--assuming that's your average.
16 MPG is perfectly normal for a GS, I get 10-12 MPG cuz im in NYC so consider all you suburbian people lucky... In fact you should be happy you get 16 MPG...