To fix an oil sensor leak, locate the oil pressure sensor, remove the leaking sensor, and replace it with a new sensor. Replacement of the oil pressure sensor is the only way to fix a leak.
The oil pressure sensor, or oil pressure switch, is a common point on failure on many makes and models of automobiles. A leaking oil pressure sensor not only leaves a mess in the driveway, it can also cause false oil pressure readings or cause the ominous red oil pressure lamp to flicker. The only fix for a leaking oil pressure sensor is replacement.
When changing replacing the oil pressure sensor, work on a cold engine, disconnect the battery, and block the wheels of the car. If the exact location of the oil pressure sensor is unknown, use a component locator. Once the sensor is located, thoroughly clean the area around the sensor. Remove the electrical connector to the oil pressure sensor, and use the appropriate wrench to remove the sensor.
Use thread sealant or Teflon tape on the new sensor. The tip of the sensor has a hole that allows oil into the sensor. Do not cover this hole with sealant, as this may cause the sensor to malfunction. Torque the sensor to manufacturer’s specifications, and top off the engine oil. With the repair complete, start the engine, and inspect it for leaks.