You can try the following:

If you are so equipped, and a bit knowledgeable, than using an OHM meter you can test the Oil level sensor, and its associated single wire yourself. Alternatively you can have have someone knowledgeable do it for you. Its quick and easy. Should be less than 30 Minutes for tests (2) and (3) below. However try (1) first. The problem may be due to a a dirty contact, if so, this may solve your problem

(1) Unplug the single wire going to the oil sensor. Its located in the lower driver's side of engine towards the front. If you have long arms than its reachable from the top. Clean the contact points of both the oil level sensor and the wire, than push it back. Drive for awhile, If the light still comes on, than go to step (2)

(2) Measure the resistance between the single pin on the oil level sensor and ground. It should be less than .10 Ohms. If higher than you have a defective oil level sensor.

(3) If OK, than measure the resistance of the unplugged Oil level sensor wire between the end that connects to the oil level sensor and socket 5 of the 15 pole plug at the back of the instrument panel cluster (Instrument Cluster panel must be pulled out). It should also be less than .10 Ohms. If higher, than you have a defective wire.

Phil

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'95 E300 Diesel, 264,000 Miles. [Sold it]