I would Loose the K&N.. they suck!! They don't filter squat and let too much crap into the engine.. 2nd problem with any oiled filter is that the oil will bleed off and stick to the intake and the MAF sensor wire... then it gets false readings and causes bad MPG and performance.. You can by a can of Intake MAF sensor cleaner at any auto parts store... I would start with cleaning the intake and changing to a different or even the stock filter and see what happens with your MPG
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DJ Phoenix (my modded) Hi-1200/240Tow/75FS/80DD/100/140SS +Minotaur
ASE Master Auto Technician 
2001 Ford Excursion 7.3 4x4
Projects. 1970's Hustler and Max II Amphibious ATV's
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