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Peugot 206 oil level indicator?

I have a peugot 206 (1.4 LX).

The oil level indicator on the dash seems to have a mind of its own, one day it'll display max, the next empty. I've checked the dip stick and the level is fine.

More recently it has started flashing, the manual says this is a fault with the indicator.

Is this likely to be costly to fix? can I just ignore it and rely on the dip stick?
ian, November 2008
mine has just started doin the same.... so not to worry as at first i thought i had too much Oil in my engine so i bleeded some out but still remains the same so it must be the oil sensor, just rely on your dip stick.....

Dan, March 2009
The engine diagnostic light on the dash has now come on although the car appears to be running fine.

Could this be anything to do with the faulty oil level indicator/sensor?

ian, November 2008
rely on dipstick,people have since the dawn of motoring.cause when you check oil you can case your eye over rest of fluids at same time

glen, November 2008
link Click here to see other fixes for 206.