An oil or fuel tank level sensor is a specialist example of a liquid level sensor. Oil and fuel tanks are different from water tanks because of the need to ensure no vapours can be ignited by the electronics and because they are also under pressure, due to vapour inside the tank.
Oil/fuel tank level sensors can be very useful in detecting leaks. Some tanks are double skinned and installation can be a challenge.
One challenge with oil tanks is the potential distance from the home and the networking technologies required to get data back to the smart home. Fortunately, the reporting doesn't need to be very frequent and battery powered sensors can report back levels infrequently to improve battery life.
There are a wide range of sensing technologies for fuel and oil level sensing, from resistive float and swing arm sensors, to ultrasonic sensors.