You say fuel temp guage - so presume you meant coolant.
Putting fans kicking in to one side, the surge in temp from warm - hot - warm etc is most lily due to the thermostat being stuck open or slow to open / close. The fans will kick in if you put the heat all to windscreen as the A/C switches on automatically - but as they are controlled by the CHT see below maybe more likly this.
When I was having problems with my 1.6, I took the thermostat out at one stage compeltely and had these symptoms. The temp guage and fans are controlled by the CHT (Cyl Head Temp Sender found in top of head between 2&3 cyls / spark plugs and super easy easy to get at) which is a £13 part and simple to replace - maybe worth changing if you have no joy - easier to do than thermostat (which in fairness is only a 30 min job excl bleeding)
TheBigAMember Since 21 Nov 2008
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