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If the holder uses a damage-dealing Fire-type move, then the holder consumes this item and the power of that move is increased by 50%. One-time use.
In single battles, Fire Gem is not typically a useful item, unfortunately. While the one-time boost to Fire-type attacks is nice, most Pokemon using Fire-type attacks would rather have the more reliable power of Life Orb or Choice items.
Typically Gems are more valuable in the VGC and similar environments, and Fire Gem is often used here to boost the power of Fire-type attacks such as Flare Blitz from Pokemon such as Arcanine. The one-time power boost can come in very useful in such a fast-paced metagame, especially as it comes without any drawbacks. In addition, it can be used to increase the power of Heat Wave and other common spread-damage attacks.
Occur randomly in Dust Clouds.