Fuego Loco is the ability of the Furioso Supremo. It blasts a ring of fire around Dani that burns nearby enemies and vehicles, and while airborne you can jump to thrust forward a short distance.
Trigger it and Dani hovers briefly while a swirling ring of fire spreads outward. Soldiers, their vehicles and the ground around you catch fire. During any jump you can also fire a short burst of gas to push forward.
Yes when enemies rush you or surround you in close quarters. It is less useful at range, where the Exterminador's rockets do more.
Bring an Amigo that is immune to fire, such as K-9000, so you do not burn your own partner. Gear with fire defense helps if you plan to fight inside the flames.