Welcome to CP!
With our pig-heavy 2320 Extended Cabin and Ox66 250 (when it is running) the fuel burn rate is right around 12gph to 16 gph depending on speed and RPM. Running at about 5000 rpms, she'll cruise at about 28 or 29 mph (statute) and get about 1.9 mpg to 2.2 mpg. We are under-propped with a 15p 3-blade. I can wind it up to 5700 rpm and the rev limiter kicks in (according to the winky blinky) and doing about 34 to 36 mph (statute). My gut tells me a 17p would be a better match and would probably yield better fuel economy.
The only time I see the GPH meter peg like that is when there is a problem. Are you able to get up to WOT?
Engine trim and trim tabs can also affect this, but not like you are seeing (if I have it trimmed REALLY badly, the GPH might go up to maybe 18 while cruising).
The biggest problem with the OX66 is getting the damned things to run properly. I have spent so many hours and dollars screwing with it, and it will suddenly just stop working, then lead me down a meandering path of seemingly unrelated problems that cascade on top of one another. Sorry for the rant, but I'm getting sick of going to the marina, seeing my "dead" boat sitting there while the weather is wonderful, and pulling my kayak off the dock and paddling 5 miles so I can go fishing instead of wrenching on the boat. No mechanics seem to know how these things work - they are like some exotic Ferrari that has to be dealt with in a very specific way by someone that really knows the motor, otherwise you have problems galore (like a Ferrari!).