GASOLINE SENDING UNIT?

I just inherited my husband's 1996 Dodge Ram 1500 4x4 5.2L 318 V.8 in excellent
condition. Runs so smooth you can't feel a thing. Very impressive.
Only had it a few months and driven it just to help with moving.
So not very often. Recently I've noticed the fuel gauge going from 1/2 tank to below empty. Radically goes between the two. I knew it wasn't that low as I'd filled it, but wanted to make sure so filled it again. It's showing it as full now and seems to be decreasing accurately. I'm guessing it w/most likely start acting up the lower the gas gets. Not sure. As I was pulling up to my storage unit the other evening, it just died. I wasn't even sure it had at first, it was so smooth, until the power steering was gone. I was stunned. As I said, it's been running so great. It died on me making a turn onto my street, leaving me hanging out in the main traffic. It died again pulling into my driveway. It only died when I backed off on the accelerator. It started right back up each time, but I'm not going to risk driving it until it is fixed. I have no clue what is wrong. I felt that if I kept the accelerator going strong it wouldn't die. So I had my foot on both the gas pedal and the brake when I was bringing it into the uphill driveway. It died just where I intended it to when I let up on the pedals. My friend thinks it may be the gasoline sending unit. Anyone know what this might be? I'd sure appreciate your input. Thanks! JAN

very likely its rust in the fuel tank, since its in good condition I think there is probably low miles too??

recommend to replace the fuel sending unit and the fuel filter/pressure regulator, and while you are at it, you can check inside the tank and confirm rust in the tank, note.. though, the bottom fuel module pickup filter is not serviceable.

but check it to see if it is clogged with rust.

I agree that there's likely a sending unit problem, but I don't agree that it's connected to your stalling issue.

IMO, if you truly had a fuel delivery problem, it'd show up more under load, not when coming back to an idle. The symptoms don't match.

It only died when I backed off on the accelerator.

This screams Idle Air Control problem. It's the IAC motors job to make sure there's enough air coming into the engine at idle (or headed towards idle, like when you let off the throttle) that the engine speed is maintained. The fact that the engine consistently stalls when you throttle off says: The IAC motor is failing, the IAC/throttle plate are heavily coked with carbon, or the PCM has recently lost its IAC adaptive values.

Has the battery gone dead recently? Or has the battery been disconnected for any reason?