Many fuel gauges will stay on full for a disproportionately long time before they start to drop.
Perform a true, mileage measurement to determine your fuel economy. At the next fill-up, make note of the odometer reading. At the subsequent fill-up, divide the number of miles by the number of gallons the tank took to fill.
Don't try to estimate fuel economy by watching the gauge.
It's possible that the increased air flow from the K&N is causing the mixture sensor to read lean and the computer is adding too much extra fuel to compensate, but don't draw any conclusions until you have performed some true mileage calculations.
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