The weight of larger tires and LT tires also saps power. As a general rule each gram of added weight on a wheel is equivelent to four grams of weight carried as load (this is why push bike riders are mad for light wheels) so if your 265/75/16 LT's are 25Kg more then the old tires you will lose the equivelent of 100kg of pulling power on top of the 3.5% increase in gearing.