"Dripless" shaft glands do not use water
for lubrication and therefor require (in most cases) grease. Waterproof wheel
bearing grease is normally a good choice, but as usual, it is best to follow mfg specs.
Teflon(R) (PTFE) is insoluble in just about anything short of Hydrofluoric Acid, and is unaffected by any hydrocarbon based products.