Personally I look at Alchemist Fire, a.k.a Greek Fire, a.k.a Napalm, as a mixture of highly volatile chemicals that when thrown and the flash breaks, it coats whatever it hits with the volatile chemicals. The volatile compounds, on exposure to air, bursts into flames, and the volatile compound is what burns, not the creature's clothes, hair, etc. The creature takes damage, and burns because the flames are in close proximity (touching) it's flesh, hide, whatever.
If you throw a molotov cocktail at a lizard...the lizard burns
If you dropped napalm on a dinosaur (non sequitur noted)...it would burn, and take damage