307 HDI 90 digital oil gauge

the reading is only showing 2 blocks ie less than half but the actual oil
level is over 3/4 to full anyone had similar?

 

i have the same sort of problem on my 306 xsi 2.0.it has an electronic oil
pressure switch. when i start car oil pressure could go to 8 bars then
down to nothing some days it read 2 bars. i had the oil pressure check and
it was ok 4 bars on idle going to 6 bars reving.
this was a faulty switch which peugeot want forty five quid for one . as
nobody else can supply a pattern part.
have learned to ignore it now as if there was a problem the oil light
would come on.
hope this helps

 

I mine reads different to it actually is. This started after the new mileage
software download. The receptionist at Peugeot told me there is a new bit
of software to sort this problem out but the mechanic told me it's just the
oil circulating around the engine. "What a lot of crap". Why do dealers
treat customers as idiots?