The steadily escalating gasoline prices, increased environmental concerns, and poor international politics have sparked new interests for alternatively fueled vehicles. There are numerous alternative fuel technologies including gasolinehybrids, diesels, full electrics, as well as hydrogen and ethanol. These technologies are changing rapidly and consumers are having difficulty trying to decipher which type of vehicle is the most worthy investment. In the current energy scene of fossil fuel, renewable energy sources such as biodiesel, bio-ethanol, bio methane, and biomass from wastes or hydrogen have become the subjects of great interest. These fuels contribute to the reduction of dependence on fossil fuels. In addition, energy sources such as these could partially replace the use of those fuels which are responsible for environmental pollution and may be scarce in the future. For these reasons they are known as "alternative fuels". Vegetable oil cannot be directly used in the diesel engine for its high viscosity, high density, high flash point and lower calorific value. So it needs to be converted into biofuel to make it consistent with fuel properties of fuel. Biofuel production is a valuable process which needs a continued study and optimization process. Mahwa seeds, karanja oil and neem oil in India can be possibly a alternate approach in making a fuel for internal combustion engines and we also compare the above fuels by blending with diesel.