Per above:
Plumbers tape is PTFE Tape. PTFE is a type of teflon and is perfectly compatible with kerosene. However it is designed for use between threads or push joints to make a seal, not for wrapping around the exterior of a pipe or joint.
The tape heathfield mentions will get you out of a jam temporarily but it is a TEMPORARY fix. If the leak is the pipe itself corroding is absolutely needs replacing.
You mention tightening - if you tighten beyond the limit of the fixture you'lll shear the threads or break the pipe or connection and then there's no going back. Be very careful. A major leak of kerosene or diesel could cost you thousands as you'll have to remove the earth it soaks into - even if this is under your house... in fact that's a more significant risk to you now than fire. Happens more commonly than you'd imagine and usually takes months of remedial works... Don't skimp on this repair