when i go to place fuel and put fire near it
it spreads on top of the fuel and eventuly eats the fuel

bug demonstation: http://tinypic.com/player.php?v=2uh02tl%3E&s=8

screenshot:

that is a Class B fire. imo, not a bug.

a nice fuel on fire example in real live is a Molotov cocktail aka Petrol Bomb

i would not classify this as a bug, in real life there are plenty of fluids that can burn and eventually burn up, fuel being one of them

Technically speaking it is not the fuel burning, but the vapours that rise from it. Liquid fuel (In real life) does NOT burn. It is the vapours that are rising from the fuel that burn up.

Same principle with a candle. Wax melts, gets drawn into the wick and then the gaseous wax burns up in the flame.

this is not a bug, it's intentional :/

@MrKickkiller this is a case over here also. The fire start about 0.0625-0.9375m above the fluid.

@Kubuxu Are we talking real life now, or Minecraft?
If real life, I think that margin could be less then 0.0625 m..

MC. 1/16-15/16m those are heights of fluid.