You will get it from the fire then go to the kerosene and fill the lantern up.
There is a barrel of kerosene under the stairs in the basement (where you entered). Click on it to fill the lantern.
Go into the celler and under the steps is a tub .Click on it and that will fill up your lantern.
There is a barrel of kerosene under the stairs in the basement.
fill it with kerosene in the basement under the stairs.
There is a barrel of kerosene under the stairs in the basement.
The lantern is one of the four treasures (along with the "draught of the dead", some ice, and a chalice). Get all 4, and fill the lantern with kerosene in the basement. Then the ghost cat will tell you where to take the items.
The lantern is acquired in the bedroom, the room with the phone and fireplace. Beat the clocks to get the lantern, then fill it with kerosene in the basement. (see related question)
Fill the lantern with kerosene in the basement. When you have all four treasures, talk to the ghost cat to the right of the kitchen. (see related question)
It's been a little while since I played, but I believe you need to first bring out your lantern. Put the oil vial on one of your other buttons. While holding the lantern, press the button the oil is on, and he should fill up the lantern with the oil.
There is a barrel of kerosene in the basement, under the stairs.
Fill the lantern at the barrel of kerosene under the stairs in the basement.