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I did find some warnings about using Teflon tape for fuel lines, mostly from the standpoint that pieces of the tape can end up downstream causing problems, for example in an injector (not a concern here really I guess), this one is typical though it is not referring to Ford tractors: "Fittings with pipe threads should always be installed with an aviation-grade, pliable (non-hardening) thread sealant (like Fuel Lube or Tightseal) on the pipe threads only. NEVER use Teflon tape-type products, as bits of tape often get into the system during installation or servicing and can cause blockages or mechanical failures. SkyStar sent out approximately 25 header tanks on which our vendor used Teflon tape on the fitting inserts. If you have one of these tanks and it is not leaking, it is best to leave it alone. If the fittings are ever rotated for any reason, the system should be drained, the fittings removed, and all traces of Teflon tape cleaned out (an old toothbrush works well to clean out the threads in the tank). Reassemble the fittings using the proper sealant, and check your filter and/or gascolator for contaminants. Also, avoid over-tightening the pipe fittings on the header tank, as this may damage the tank material itself."
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