Your engine is OK, the problem, and I dont want to come off here on anybodys bad side, is the lift kit, oversize wheels & tires. I know of two people personaly that have a HD Ram and a Duramax, both are 4x4, auto, with lift kits and oversize wheels & tires. They both removed the tires and installed the stock tires and the MPG improved.
The lift kit and the wider profile tires cause aerodynamic drag. The lift kit and oversize wheels & tires weigh more. It takes more power to get the truck moving and to maintain speed.
Also, the newer the model year the less the MPG will be. Yours is a 2006, the 2003's get better mpg and the older 12 valve Cummins get even better MPG. The 2008's have so much more crap on them than the 2006's for even fewer emisions, they will get even less MPG.
Our HD turcks no matter what the brand weigh 6,000 to 7,000 pounds, that takes alot of fuel to push them around. We should only expect so much from them.
I think a 2006 truck with 4x4, auto with stock engine, wheels & tires, no lift should get around 18 MPG TOPS. .
My truck is stock height, stock wheels & tires, 2 wheel drive, six speed stickshift trans, no fuel mods or timing mods done to the engine, 2003 yr gets 22. 9 MPG solo at 70 MPH and 14. 2 towing enclosed car trailer at 62 MPH. I had the truck weighed and with the shell, full tank of diesel, my 175 lbs. it weighed 7,000 lbs. total.
Hope this helps. By the way oil keeps going up in price, it will soon be $100. 00 per barrel. Diesel keeps going up, in CA the price is now $3. 45 a gallon, 10-31-07. It will be $4. 00 by next year.