I adore the visual and auditory style of the game, especially the use of more modern shading and lighting styles with the PS1 look of the models and textures. Having said that, there're a few minor tweaks I would make.
1. The torch is misspelled tourch when you go to pick it up, so I'd fix that first, haha.
2. I would personally like it if there were keybinds for various items you use quite often (e.g the lighter and/or torch) and it might make sense to have the player slot items into keybinds on the inventory screen or something for ease of use (the only analogue I can think of right now is (though quite dissonant in tone) Pokemon's registered key items, so you might know better what I mean if you've played any Pokemon games). I find it a bit annoying to have to tab into the inventory screen and scroll through items just to lighten up an area a little.
3. I think the screen that comes up when you get an item should be skippable, say if the player presses 'e' then it skips. This is brought up because I found that I'd accidentally remove fuses over and over and it was a little tedious to sit through the little animation each time.
Other than that though I enjoyed this little demo a lot and I can't wait to see how the full game turns out.