Hi there, this happened to me with my petrol 1.8 2004 S40, it appears to be a common problem, eventually the gauge will stop working altogether and the fuel warning light will stay on.
My best advise is to fit a new unit (do not go for a second hand one) shop about to get the best price, I managed to get a brand new Bosch unit for £81 after hours of surfing or if you do not intend keeping the car very long just keep doing what you are doing and fill the tank and zero the tripmeter (this is what I did for several months). funnily enough I just had my new Bosch unit fitted a couple of days ago by a local mechanic and all working fine now.
One last bit of advise, if you decide to fit a new unit get yourself a new rubber gasket (approx £13) as the old one will be hard and brittle
Hope this helps
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