You should always exercise caution when using petroleum based products on or in your body.
One of the major concerns is that there is no way of determining how many PAHs, or polycyclic aromatic hydrocarbons are contained in petrolatum. PAHs are potent pollutants and have been identified as carcinogenic, mutagenic and teratogenic.
Petrolatum is listed as a probable human carcinogen in the European Union's Dangerous Substances Directive.
As a barrier product it performs well, it's great for putting around your hair line to protect your skin from hair dye, but that's where it's redeeming qualities end.
There are far safer products available, such as Shea butter.
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