A quick Google confirms the yellow as being for natural gas, hence also petroleum products. Here's more:
"Beyond Teflon tape
Many major manufacturers of hydraulic equipment recommend NOT using Teflon tape, as it often leaks and bits of it break loose, then fouling valves and other components. Loctite PST Pipe Sealant is highly recommended and IMHO the way to go. I've seen pipes doped with it, then tightened only hand tight that held 100 psi. No, I'm not a Loctite rep, just a satisfied user. I rarely use tape anymore. "