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I have a 1997 A4 z28 with 111847 miles. I deleted the donkey dong on the elbow and all seems to be fine. However, my oil pressure gauge is reading really high all of the sudden. It previously read about 20psi. Since the mod, it now reads 40-60 psi when at idle. It does not move much during acceleration, leading me to believe that I may just have a faulty gauge. The gauge slowly falls back to 40 if it was reading 60 psi when I started the car, but it still seems high. It runs fine though so im confused.
 

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Connect another gauge to it and see what it reads. It may be that your gauge is faulty like you said. I would start there.
 

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Your other post said your idle RPM was up to 1000 from 800 after doing some intake work. Could be the higher RPM increased the oil pressure. Although that's a big jump for only 200 RPM. Has that been resolved ? For my info.. Are you tuned, stock A4 should be 550 D / 650 P/N .
 

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the connector or wiring is probably loose or corroded, or the sender isnt grounding to the chassis properly. this is common when they're installed with too much thread sealant crap on them (you gotta make sure not to tape the entire sender up)

the way the gauge and sender works, higher oil pressure is more resistance. so any increased resistance due to a shitty connection will read higher, not lower.

just for fun, get a wire hooked up to ground, then poke the exposed threaded portion of the oil pressure sender. if your oil pressure gauge drops when you do it, it's a ground issue.

a failing oil pressure sender almost always reads low. reading high is usually weak wiring. the gauge itself can die too, of course..
 
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