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Step 1. Start with new page and use the "fill" button to make the background black. It doesn't matter what size you use for the background. Press the X button on your keyboard in order to flip the colors, and then click on text. Type whatever text you want, for This illustration I used the word "Inferno."
Step 2. Click Filter + Sylize + Wind with the setting "wind" and "from the left." Press Ctrl+F to apply the same filter a second time. Now use another Filter + Stylize + Wind, and this time make the setting "from the right." These creates a wind drag coming from the opposite direction.
Now you need to convert the image into Grayscale mode. Select Image + Mode + Grayscale. After this select Image + Mode + Index Color. After this you want to give the text some color, so now select Image + Mode + Color Table. After this choose "Black Body" to get the desired fire effect. The text will be a very ligth white color, and now I will show you how to make it stand out.
Select the text tool, and press the "D" button on your keyboard. Retype the same word with the same size and font, and place it within the original text image. This should give you the right effect. Here is how mine finally turned out. Take your time and play around with the different color combinations. Not bad eh?