Specific gravity has nothing to do with whether two liquids are mutually soluble. The determining factor is the relative polarity of each. Organic liquids range from completely non-polar to completely polar. For example alcohols ie methanol, ketones, ethers, ect. are classified as polar solvents. However long chain saturated organic liquids like kerosene, deisel are quite non polar. The trick to mixing polar and non-polar if forming a tertiary or even quatinary system using solvents which are less polar. For example, castor oil (very polar) mixes readily with kerosene when diethyl ether is added. The either is less polar than the kerosene, but not as polar as the castor. Since it is soluble with both the castor oil and the kerosene it forms a trinary system which is a single solution.

The kerosene and methanol will mix if you use an oil like Klotz which is soluble in both. Probably not at the 50:1 ratio, but 3 or 4 % mignt do the trick.