I agree with AliB, take the hospital's advice for now and leave the wound dressed the way they advise. Only once the wound is completely healed would I suggest trying any oil to help the scar.
My littlest boy had an operation aged 15 months. For months afterwards I was worried about the very noticeable red scar (it is on his penis) but today I changed his nappy and I noticed it is almost gone less than a year later. Babies are the most incredible people for healing.
I suspect that part of your concern about the scar is that you feel in some way responsible for the accident. If that is the case then please don't feel guilty. Accidents happen all the time and that's all this was.
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