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Yes, it is a oil pressure gauge. The pressure pretty much matches the oil gauge in the dash. I haven’t noticed any appreciative difference since I installed the oil filter. Inside the center of the filter is a oil return pipe, with a 1/16” restrictive hole that keeps the oil pressure from dropping off.

I installed the oil pressure gauge when I was having issues with low oil pressure. It turned out the main bearings were all screwed up and after $2k and a total engine rebuild all is good.