You will get some fluctuation from fuel movement, but not like you’re experiencing.
Fuel gauges on boats are notoriously inaccurate, but should give you an approximation of the fuel level. Yours sounds like it’s needing maintenance as it’s off by way too much.
It could be a wiring issue like bad grounds or a sender that may have dead spots or a gauge that is sticky (Faria gauges are notorious for this).
Testing the gauge is fairly straightforward.
Turn key on, note the level shown.. Rap the face of the gauge with your knuckles and see if the reading changes. If so, gauge is sticking.
If no change, then you can move on to the actual testing part.
Verify you have 12V at the + terminal.
Disconnect The S wire (signal from the sender). Gauge should read Full.
Jumper the S terminal to the - (ground). Gauge should read E.
If all these pass, then gauge is good.
Checking the sender requires a meter in the Ohms setting.
Initially, you can test with the sender still installed. Probe between the signal terminal and
Ground. Reading should be between 33-240ohms for US senders. 33 being full and 240 empty. You can roughly guesstimate what the reading should be if you know the fuel level in the tank. Readings are pretty linear. Ie 100 ohms is approx 1/2 tank.
Checking the sender out thru the entire range involves removing it from the tank and moving the arm or the float thru the entire range observing the Ohm readings.
If both check out, then it’s a connection/wiring issue. Next check all of the connections at both the dash and at the sender/tank, particularly looking for and ground issues.
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