A bad ground at the tank can cause these symptoms.
Take a look at the wiper arm on the sender (by removing the cover plate)
does it swing all the way across the resistor as the fuel level varies.
This checks if the float is sticking against tank side.
Check the change in resistance as the wiper arm moves. This checks if
the sender is functioning.
Then check the gauge variation as you change the resistance using a
potentiometer to simulate the tank sender. This checks the gauge
By comparison of the above tests you can determine if any part isn't
working and if the gauge and sender are matched.
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