Fuel on paper exploded (7)
I believe the answer is:
propane
'fuel' is the definition.
(I know that propane is a type of fuel)
'on paper exploded' is the wordplay.
'exploded' indicates an anagram.
'on'+'paper'='onpaper'
'onpaper' anagrammed gives 'PROPANE'.
(Other definitions for propane that I've seen before include "Bottled fuel gas" , "Type of gas" , "gaseous fuel" , "A hydrocarbon gas" , "Gas used as fuel" .)