I was taught to say:
"If I was on fire, I would burn, but if I were you I would just ignore it."
The distinction is that being on fire is possible. My being you is not possible. Several years ago I tried to verify this usage but ended up just confused. What is your rule?
I would say “If I were on fire...” because I am not on fire and have no intention of setting myself of fire. If I am on fire please throw water on me. I need to look that one up in my grammar book.