A filter system includes a filter configured to regulate fuel pressure as well as automatically vent air from the filter. A pressure regulator valve is positioned in the top of a standpipe of the filter. The filter includes a filter cartridge with top and bottom end caps. The top end cap of the filter cartridge has a hole with radial sealing gasket, which seals against the top of the standpipe to prohibit flow from bypassing the filter cartridge. This arrangement exposes the regulator valve to the fuel and/or air at the top of the filter housing. Pressure in the housing opens the valve, allowing air and/or fuel to be vented through the standpipe, and back to the fuel tank.