PTFE tape is not something I would use anywhere near an oil system. Great for water, but in oil you will run a risk of small bits of ptfe finding their way into the engine.

To seal the lid, you need something that is soft and will deform to the lip of the tank to prevent leaks, and will not degrade or break up under constant contact with hot oil.

Cork gasket meets both these criteria and has been used in such applications for over a century. Why try to reinvent a wheel?

Tim H.
1986 4/4 VVTi Sport, 2002 LR Defender, 2022 Mini Cooper SE