In my 03 blazer Ive had this issue of the gauge not going below 1/4 and runs out of fuel at said 1/4 for a while .What I've done is change the pump/sender assembly,rerun purple and both black wires and still won't go below 1/4 tank and that's where I run out of gas. The only thing I could think it would be is a bad stepper motor. Anyone have any ideas ?

 

It sounds like the zero of the gauge on the instrument panel is set wrong.

You could eitber live with it and not forget that "1/4" = empty or you can get a replacement gauge panel from a wrecking yard and install it.

If you swap out the whole gauge panel the odometer will be off. I know this as I did this when my speedometer gauge would stick.

You also might try swapping the gauge in the gauge panel.