The oil level sensor and the oil pressure sending unit are two different things, as indicated by their names. The oil pressure sending unit does not control oil pressure, but simply sends a signal to the dashboard guage that indicates oil pressure. It's likely the sending unit is bad, so measure the oil pressure with a mechanical guage to confirm the actual oil pressure. If the oil sending unit is bad replace it.

The oil level sensor is mounted on the side of the oil pan and illuminates a red warning light on the dashboard when the oil level is too low.

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Fred Hoelzle