Cloth and fuel to hide (7)
I believe the answer is:
oilskin
'cloth' is the definition.
(I have seen 'Waterproof cloth' mean 'oilskin' so perhaps 'cloth' could also mean 'oilskin')
'fuel to hide' is the wordplay.
'fuel' becomes 'oil' (oil is a type of fuel).
'to hide' becomes 'skin' (a hide is an animal skin).
'oil'+'skin'='OILSKIN'
'and' acts as a link.
(Other definitions for oilskin that I've seen before include "Protective coat" , "Heavy-duty waterproof" , "security for a rainy day" , "protection for Ainslie?" , "protective cloth" .)