Grade-1 fatty liver and excessive gas can happen along with acid-peptic disease or colitis, but they are not always directly related. Fatty liver usually develops from an unhealthy diet, being overweight, high sugars, or high cholesterol. Excessive gas and acidity are more commonly linked to acid-peptic disease, gastritis, IBS, or colitis. However, poor digestion and unhealthy eating habits can worsen both problems at the same time. If your gas, acidity, or abdominal discomfort is persistent, it is best to consult a doctor.