gas in oil

I have a 91 Olds 98 regency. It's get 256,000 miles on it and is still in great mechanical shape. I just acquired the car from my grandfather who moved on to a Park Avenue Ultra. When i got the car i smelled gasoline in the oil and the oil pressure at idle would drop way down (as far as 8psi before the warnings started going off). I immidately changed the oil when i got it back to my house and put new fuel injectors in the next day. The car seems to be driving well, but i'm getting terrible gas mileage, so i rechecked the oil. Again, i smell gas. Has anyone else encountered this problem, or have any ideas? Thanks for the help.

The worst thing that could be is that you may have blowby with your pistion rings, especially the oil retainer ring. You might be able to tell if this is so by checking the compression. If you have a compression tester, try that. If not, start and shut down the engine. If it shuts down quickly, you have good compression. If if winds down rather slow, you most likely have low compression, or exhaust problems. I suspect that with over 200K miles. My other thought is that you may have a leaky head gasket. Either way, good luck.

probably the head gasket.
jrbaboon is right about the piston rings also.

I realize it's been a while since you first posted this, but have you checked for a ruptured fuel pressure regulator diaphram? Pull the vacuum line off and check for liquid fuel in it. Also check regulator with vac hose off, at key up. Watch for fuel leakage. If so, you have found your problem.

Thanks for your consideration, however the car has now been gone for months. I did replace the entire fuel rail, as the pressure regulator is permanently attached. I assumed that if the regulator was the problem, replacing it would fix that issue, however I got the "new" rail from a salvage yard, so who knows, I should have actually checked for a bad regulator instead of just throwing parts at it.