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The oil level of the power transformer is an important predictor to analyze the working state. The conventional oil level detection method cannot detect the level when the power transformer is working, which is not convenient for the actual application. In this paper, an oil level detection method based on double pressure sensors is proposed to online measure the oil level for power transformer, the basic principle of the proposed oil level detection method is explained and studied, and a prototype is developed to verify the proposed method. The tested results show that the developed prototype can reach high precision for oil level detection of a transformer.