That is the fuel pressure regulator. Tough for it to be a leaker. There should never be fuel in the small hose, that is for vacuum. Look carefully for leaks at the hose fittings. It looks like those are the original hoses and clamps. The hoses will sometimes crack at the ends of the inner liner and all the clamp tightening in the world won’t stop that leak. 

Dennis
 

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of Kk Al
Sent: Saturday, August 1, 2015 5:23 PM
To: vanagon@GERRY.VANAGON.COM
Subject: What is it?

Hello,
 
87 Syncro here. I noticed today that when the van was cold, fuel was dripping out of this device.  I’m not sure what it is.  I checked the fittings, they are tight. I assume it needs to be replaced?
See pic

http://s1112.photobucket.com/user/skpnsf/media/IMG_0326.jpg.html <http://s1112.photobucket.com/user/skpnsf/media/IMG_0326.jpg.html>