It pervents the oil from spoiling and is also more weight efficient.

A regular can of Lantern fuel weighs 0.5 kg and contains 0.5 L of liquid.

A filled jerry can contains 4 L of fuel, but only weighs 3.30 kg; a full 0.7 kg lighter.



It also has the side benefit of not filling your inventory with a million different bottles of Lantern fuel whenever you go fishing.