no, when the oil smells like gas that means you have a problem....
that means you have fuel blowing past the rings and mixing witht he oil. this can lead to bearing failure.....
common problem with over spraying a car is burning up the piston rings.
you are getting average fuel mileage in the city.... I normally got around 32 highway so your not far off there. I'd look into a backup motor... "just in case" you ever have a problem witht he current one. dont think of it as a bad motor.. I'd get a compression tester and test the compression on each cylinder. it will tell you if your rings are going. or bad.....
but I'd drive it and continue checking the smell of the oil.
