Is the oil gauge indicator the thing on the dash with an indicator pointing at either 3,2, or 1? If so.. yes it functions normally. Its usually around 1.5 and 2, sometimes 3 at idle.... and always at 3 when accelerating.

Does it sound like the entire fuel pump system needs replacement? The thing looks old by appearance. Has some rust and the rubber cables look a little frail.

thanks for your replies