thats deffo not right, fan should kick in on slow when temp gets to about 3/4, which is well over 90degrees oil temp.
normal running when driving about the gauge should sit at half way, no matter what. if it reads colder the stat is opening too early, assuming the gauge isn't under-reading. If the dash temp and oil temp agree then that goes a ways to confirm the readings are correct and you have a problem elsewhere.
thing is tho, the fan can do what it likes, but it shouldn't bring temps bellow 1/2 as the stat closes off coolant flow thru the rad at this stage. I wonder if your coolant & oil gauges are both under-reading somehow, maybe due to a dash fault?
try checking the Voltage stabiliser:
To test the voltage stabiliser, connect a voltmeter between the terminals shown (see illustration) with a 12 volt supply to the remaining terminal. A constant voltage of 10 volts must be registered. If the voltage is above 10.5 volts or below 9.5 volts renew the voltage stabiliser.