Could be the govanor going bad or it could well be the carb out if adjustment. If the main jet is set to lean and or if clogged up yes it will surge up and down. I would start by pulling the main jet adjustment parts out the needle and the part the needle sits in. Turn on the gas and make sure you have a good flow of gas out of it. Also take a small wire etc and poke into the main jet to make sure it is in fact open. I use a torch tip cleaner tool for that. Then put the parts back on and start at say 4 turns out from bottom and adjust it from there
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