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Couple of options - remove the existing oil sending unit (low oil pressure switch for the dash indicator) and place it in that hole - likely need the right fitting, depending on what is on the end of the gauge you have. That will also make the oil light come on in the dash, unless you get a "t-fitting" to allow both of them to share the port.
IMO, a better option is to get a sandwich adapter plate - basically fits between the oil filter and the engine filter pad. You screw in an adapter thread that tightens the sandwich plate to the existing plate. There is an o-ring on the engine side that will prevents leaks. You can still use the same filters, just sticks down an extra 3/4" to an inch - should still have plenty of clearance, even in the lowest stanced cars. On the adapter plate - there are threaded fittings that can take a number of sender units / accessories. You keep the OEM pressure sensor in place and have plenty of space to add your oil pressure sending unit or tubing.
Assuming your gauge is an electronic one - has a sending unit and not the metal tube? Both work well, but with the tube types, you have to guard against damaging the tube or you'll get an oil leak IN the car.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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