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A malfunctioning fuel gauge in a 1989 Volvo 240 DL could be due to several reasons, including a faulty fuel sending unit, a broken gauge, or wiring issues. The fuel sending unit, located in the fuel tank, may have failed or become disconnected. Additionally, corroded or damaged wiring can disrupt the signal sent to the gauge. It's advisable to inspect these components to diagnose and resolve the issue.

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