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UltArc is right: if you set your "units" to Litres to set your tank size and to enter fill-up amounts, you will have to switch back to "gallons" to view your fuel consumption in MPG.
It gets a bit more complex than that, though, since the default "gallon" in question in the ScanGauge is the American one. So the "MPG" figures shown may appear to you to be lower than expected (because the US gallon is smaller than the Imperial one).
To calibrate the device for Miles Per Imperial Gallon, leave the ScanGauge volume units set to "gallons", and when you fill up convert your litres purchased to Imperial gallons and enter that number in the gauge. That kills 2 birds with one stone: it will calibrate the gauge to your vehicle, and to Imperial gallons.
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