The ratio of Silicone to thinner is roughly one to three IIRC. You want it thin enough to use a brush and to penetrate the stitching but thick enough to only need one coat. Turpentine will work if available but mineral spirits (AKA paint thinner) is cheaper and if you get the odorless spirits, it leaves no lingering odor.
The thinned silicone is actually more of a slurry than a solution. For small jobs, I just take a dab of un-thinned silicone sealer on my fingertip and apply it directly to the seam.
Yes you can use white gas (naptha) but you should only mix and use the stuff outdoors. White gas is, as I'm sure you all know, volatile and flammable.