Full disclosure, I have been playing Minecraft recently...
I though it would be cool to be able to light things on fire, so, flammable liquids (oil, etc), wooden torches, brass lamps. Could have a new object attribute, so it would look like:
(Burning) A bundle of wood is here, burning.
The "burning" adjective could be appended to the long description of the object.
Uses? Could be a lot. One, it would light dark rooms. Two, could be used as a weapon, to light someone or something on fire. Three, could be used to destroy an item (scroll, boat, body...you get the idea).
I'd say in order to light something on fire you'd need a flame source, like a lamp, or match, or flint and steel (yes, Minecraft).