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I agree, you're describing the fuel heater.
Yes it could be leaking but it's as likely to be leaking fuel out as air in. If you don't see some fuel leaks around the fuel heater then the air leak is likely elsewhere. There are a couple of rubber O-rings inside the heater that can be replaced but you'll probably need to get them from the dealer to be sure you get the right ones.
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LRG
1987 300D Turbo 175K
2006 Toyota Prius, efficent but no soul
1985 300 TDT(130K miles of trouble free motoring)now sold
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