I use the thread sealant most places sell in a tube that is good for gas and oil. It is teflon based.
The rub on teflon tape is (and any thread sealant) is that you don't want any to overlap the end and inside to where it can get into your system and plug something up. Some people use it as long as they keep it back a hair from the end/inside.
The threads should seal all right anyway but the main thing the sealant does is lube the threads so they will tighten up to the right torque and go all the way in. I assume you are using npt (a tapered pipe thread) and not O-Ring Boss or J fittings both of which don't need any sealant but I use it on them to but keep it off the mating surface.
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