Liquid-level control in tanks is widely used in various industrial sectors. Due to problems arising from the case that the liquid level is above or below the recommended, the process of its control is of great significance. The proportional integral differential (PID) controller is one of the most widely used controllers in applications that require accuracy and optimal automatic control. In this paper, single and coupled ship fuel tank systems are discussed. In addition, mathematical models and their linearization using two different approaches are presented. The two control approaches are used to maintain the specified liquid level in tanks. The first is based on the design of standard PID controllers, with the application of the Ziegler–Nichols, Takahashi tuning, and Auto-tuning methods. The second approach, proposed by the authors, is based on the application of the Dahlin algorithm. The simple modification of the Dahlin controller, which can avoid the “ringing” of the control signal, is suggested in the paper. Moreover, the lower limit of the decrease in the desired time constant, which ensures the desired behavior of the system, is determined. The comparisons provided for different performance indexes show the advantages of the modified Dahlin algorithm approach compared to the standard PID controllers. Furthermore, the comparison with the literature-known approaches is realized.