According to The Environmental Working Group, 1 in 14 beauty products contain petroleum. Petroleum found in these products is typically United States Pharmacopoeia (USP) grade of the highest purity and approved by the FDA. No studies have found this type of petroleum to be carcinogenic.
Most of the negative buzz around petroleum in cosmetics stems from unrefined petroleum - which contains polycyclic aromatic hydrocarbons that may have a link to breast cancer.
If you choose to avoid petroleum jelly, consider natural alternatives such as beeswax, cocoa butter or shea butter.