I am forever looking for ways to use old paper towel and toilet paper rolls for crafts. We’ve got ours set up as a holiday centerpiece, but you could easily make this into a Hanukkah craft by creating them in different sizes and adding the “flames” each night.
What You Need to Make Paper Towel (and Toilet Paper) Roll Candles

Start by creating lines of glue around the top of your paper towel rolls. It looks better if you make them different lengths and leave a glob of glue at the bottom of each.

Cut out the flames with scissors. I left a bit of extra foil at the bottom of each so I could use it to tape the flame to the candle craft.

Once the glue has dried and you've put on your cat costume, it's time to paint the paper towel and toilet paper rolls. This is a very messy experience.

Tape the flames to the inside of the paper towel rolls. We added a little fake holly to make a centerpiece. You could also glue them to a painted paper plate for a holiday centerpiece that is a little easier to move.

I realized later that those LED tealight candles will fit in the top, too. Just stuff some newspaper, tissue paper, etc. into the top and set the LED light on top of it.
I made advent wreaths similar to your project. If you use a square of yellow or gold tissue for the flame and stuff it inside the tube like you do when packing a gift bag, the flames can be lit and snuffed simply by pulling the tissue up or pushing it down inside the tube. The fun continues!