I have to say, when I first moved back to the U.K. after a long time in the states, I absolutely could not control my shock followed by giggling when people asked if they could bum a fag off me at a pub or suchlike. (Fag is slang for cigarettes for those outside the U.K.)
I've always known the word "fag" to also mean a bundle of sticks, like you'd use to start a fire. I expect the meanings are related.
Life seems to be peppered with problems with people with limited vocabularies who would rather make themselves "offended" by something, rather than think.