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Originally Posted by old_master
The fuel level sensor is faulty, has a poor connection, or has a poor ground, located on the frame rail, driver side next to the fuel tank. On some vehicles, the fuel pump and the level sensor are serviced as a module. Some are serviced separately, check with your local parts store.
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On my 97, the ground strap grounds the filler neck to the frame. It doesn't ground the tank, as there's a rubber hose about 6" long that connects the filler tube to the tank.
The ground for the level sensor is part of the wire harness for the level sensor.
(at least it is on my '97). There's two separate connectors on the fuel pump assembly, a power connector, and a sensor connector. The housing is completely plastic, so there's no ground path for the sensor or the pump motor to the tank. (I checked Advance Auto parts, the pump assembly is the same type as my '97, and you can replace the level sensor, but you'd need to get that from a dealer for ~$100.00, or buy the whole pump assembly for ~400.00 from Autozone, Advance, etc)
So, I'd guess a bad sensor (these trucks are known for it).