Fuel centre smoke rose nearby (8)

I believe the answer is:

kerosene

I'm a little stuck... Click here to teach me more about this clue!

'fuel' is the definition.
(I know that kerosene is a type of fuel)

'centre smoke rose nearby' is the wordplay.
'KEROSENE' is hidden within the letters.
However, I'm unsure how this is indicated.

Can you help me to learn more?

(Other definitions for kerosene that I've seen before include "Oil used as fuel in lamps and heaters" , "Combustible" , "No seeker for American fuel oil" , "Sore knee (anag.)" , "Paraffin oil (E, not I)" .)

I've seen this clue in the Sydney Morning Herald.

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