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VW recommends synthetic oil only. In fact, your warranty will become void if you use anything else. There is a factory service bulletin warning about engine oil sludge problems using conventional oil. Don't use blends either, just straight synthetic. VW recommends 5W-40, but 5W-30 works just fine, and that's what I use (since 5W40 isn't as easy to find). Expect to pay $5+ per quart, and you will need almost 5 quarts. Be sure to use the factory MANN oil filter too since it has a large capacity. If you search this site, there is alot of other threads concerning this very issue.

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Q: What is the recommended oil for a 2003 Passat with a 1.8L engine?
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