Ignoring the source of the fuel and oxygen, consider what happens if you do have a layer in the upper atmosphere that's constantly burning bright and hot enough to heat a nearby moon. The planet within is *entirely enclosed* in this shell of fire with no way to shed heat absorbed from it, and will quickly heat up to the same temperature as the flames. The end result is a ball of molten rock, and the annihilation of any biological activity that might produce fuel and oxygen.