My guess is you just need either new sending unit or guage. I would replace the sending unit. I'm leading towards that.
You can't lose if you put God first!
1989 LX, 306 with TF top end kit, Anderson N-21 cam, TKO 600 trans with steel splatter shield,full Maximum Motorsports Mustang maximum Grip box, Detroit locker rear end with 31 spline Moser axles. Staggered wheels with Nitto 555 315/35/17 out back.