The spotlight lights up a horizontal area depending on the intensity of the fuel source which can range from 5 to many, many blocks. The light stops if there in an opaque obstacle in the way during construction or re-fueling. A known behavior is that the light will not diminish immediately if a block in place in front of the spotlight until the next refuel cycle. This behavior dramatically reduces server lag in populated servers with many fueled lamps and spotlights.
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