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Sure sounds like the float is bad, the only way to repair it is replace the oil tank since it is molded into a chamber in the tank. Not worth the money in my opinion assuming you can find a new replacement. I have the exact same year and horsepower as you do. Bought it new in 1998 and now has almost 800 hours on it. I believe my sensor or float went bad at about 170 hours, unplugged the sensor and never worried about it again. This low oil sensor is for those who run their oil tanks down to low levels or don't pay attention to these things. I kind of equate it to an idiot light in an automobile, your engine has a visible gage in the front of the cowling that is about as good as it gets to seeing your oil level. I never let it go lower than a 1/2 tank, it's just routine. I have 5 active Mercs in service ranging from 1995 to 2000 and the 1998 60 hp is the best of the bunch, it's just bullet proof.


(please follow guideline #1 at the top of this page and use the full 4 digit year. Thanks)