I've had this '97 850 non-turbo for four months. Been smelling gas for over a month. Had Volvo dealer check fuel tank under recall program...no leaks.
I finally discovered fuel dripping from around fuel pressure regulator on fuel rail. Took it to indie Volvo garage (where I also bought the car), who had "never seen this", but replaced regulator O-ring and injector seals.
It is still leaking..the regulator is usually wet with gas, even if not noticeably dripping. This regulator doesn't look like the one shown in the Haynes manual...no hoses to it, not held on by bolts. Just plugs into fuel rail, held in by some kind of metal retainer and can be rotated by hand.
Don't know if this is the only source of the gasoline smell, but how to stop the leaking from it?
Fuel smell-leak around fuel pressure regulator
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