The oil level sender units I have seen use a "float" type device and given the small amount that the ones I have seen actually move I don't think it would take much gunk on them to cause them to stick. That would be one possibility???
It shouldn't be a wiring issue because if the wire has broke or been disconnected your light should be constantly on.
The oil level sender is usually not too hard to remove (don't know about a GT4 though) so it might be worthwhile checking everything else first (which it sounds like you have) and then remove the sender and test that.