Methods and systems for manufacturing emulsified fuel include: adding surfactant to fuel; blending the surfactant and fuel together in a first mixing chamber for a first mixing period; subjecting the blended surfactant and fuel mixture to a dwell period following the first mixing period; introducing water into the blended surfactant and fuel mixture following the dwell period; and blending the surfactant, fuel and water together in a second mixing chamber for a second mixing period. The surfactant is selected to exhibit an HLB rating in the range of 8.75 to 8.83.