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Given the driving conditions you've described & the temperatures your doing it in (with the aircon on) im not at all surprised its running a tad warm.
You may be surprised to know that the gauge readings your describing are suggestive its still under 100 degrees/C.
Nissan gauges are well known in Australia for not being very trustworthy so before I'd do to much more I'd have an after market Temp gauge fitted & be sure of whats really going on before worrying yourself & spending on unnecessary repairs.
As for your economy? Its sounds to me that a good drive on the open road wouldn't go astray & give the engine a chance to burn out all that's been built up in it from all that slow stop/start driving.
Being a 94 in tipping its fuel injected & may pay to have the fuel system serviced. A poorly functioning fuel delivery system will rob you of power & send your fuel usage through the roof.
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