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If the fuel mixes with the oil it is because the engine is a 2 cycle engine rather than a 4 cycle engine. A 2 cycle engine has no oil reservoir and the engine is lubricated by the oil mixed with the gasoline. Without that oil in the fuel the engine would be destroyed. Now if you are saying that you have a 4 cycle engine and the fuel is getting into the oil reservoir, then I would suspect that the needle valve and seat are defective in the carburetor which is allowing fuel to flow into the intake while the engine is not running. This fuel will flow down into the combustion chamber and eventually end up in the oil pan. The float may also be sticking causing the same thing. Make sure to turn the fuel supply off when the engine is not running.

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Q: Why does the fuel mix with the oil on your 250cc ATV?
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