In today’s world, actual record of fuel filled and fuel consumption in vehicles is not maintained. It results in a financial loss. To avoid this the authors are implementing a microcontroller based fuel monitoring and vehicle tracking system. They have used the reed switch which works according to the principle of Hall Effect for sensing the amount of fuel filled in the vehicle and amount of fuel consumed. Then this record is stored in the system memory. This system stores the record for several logs. They have used the MSP430F149 microcontroller for their system. It is a ultra low power, 16 bit RISC architecture controller. It contains inbuilt 12 bit ADC, serial communication interface.