I've never heard of anyone using olive oil... not saying it's bad but I've just never heard of it. Do you have any stores near you that sell vitamins? If so, you might want to consider getting some vitamin E. I just use the pills; I break them open and massage the inside onto my lobes.
And yeah, until you get rid of the scarring stretching really isn't a good idea. Stretching scar tissue is VERY difficult.