No, the ScanGauge can't measure fuel consumption. It guesstimates it based on the amount of air entering the engine, which it infers from MAP and RPM, or MAF, which it only reads once a second AFAIK.
It's the best estimate available over the OBD-II port, and it's usually good enough unless your car varies the air:fuel ratio. On my lean burning car, I don't even bother using the ScanGauge for mpg.
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