The type of lubrication is usually restricted at most races to dry lubricants but there are great advantages to using the right lubrication. By the same token there is harm in using the wrong lubricate. First, we should discuss what it's all about.
The wheel should turn on the dry axle without any undo force but the friction between the two parts will quickly act to slow it down. It's this friction that you would like to eliminate. While we can't eliminate friction completely it can certainly be reduced. An automobile uses steel roller or ball bearings to reduce friction on its wheels but our car isn't permitted to use them. We can only lubricate what we already have. A lubricant is any agent that provides a reduction of friction. While there are many types of lubricants many will either not work on light-weight parts or are not formulated to work with plastics. Petroleum products such as motor and household oil may soften the plastic wheels. They could, after a time, fail to turn at all. This is not the surprise you'd like on race day. Other liquid or aerosol lubricants include a spray-on Teflon, WD-40, CRC and 3 in1 oil.
The most common and successfully used lubricants are the graphite formulations and Graphite-Moly blends. They provide a very smooth plating of microscopic spheres that greatly reduce rolling friction. Plain graphite is available in hardware stores and some variety stores. When installing your wheels fill the axle hole of the wheel while capping the other side. Gently push the axle through the wheel. Do this several times and spin the wheel to help distribute the graphite through the running surface. A good test of the wheel, axle and the lubrication is a spin test. While holding the wheel in the axle in a horizontal position spin the wheel with a flick of your finger. It should spin freely slowly coming to a stop after 20 to 30 seconds. If it didn't spin that long take a close at your wheel clearance, axle finish and lubrication. Correct the problems then test them again.