Heat-shrink tubing should not be used on wires going into fuel tanks. Heat-shrink tubing is made of a polymeric material that can degrade when exposed to certain chemicals, such as those found in gasoline and other fuels. This degradation can lead to the tubing becoming brittle and cracking, which can expose the wires it is covering and create a potential hazard.
To ensure the safety of wires in fuel tanks, it is recommended to use materials specifically designed for this purpose. These materials are made of materials that are resistant to the effects of fuel and are designed to maintain their integrity in harsh environments.