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It uses pulse width.
When you first set it up, you can use values close to what you expect. The beauty of it is, it's very easy to calibrate the values for what you're actually getting. Just pump gas at the same station, same pump, 2 times in a row, and you can adjust the value in the mpguino to reflect the amount you actually used.
My mpguino's reported gas usage is usually off by maybe +/- .2 gallons, for about a 10 gallon fillup.
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