This invention relates to an emulsified water-blended fuel composition comprising: (A) a hydrocarbon boiling in the gasoline or diesel range; (B) water; (C) a minor emulsifying amount of at least one fuel-soluble salt made by reacting (C)(I) at least one acylating agent having about 16 to 500 carbon atoms with (C)(II) ammonia and/or at least one amine; and (D) about 0.001 to about 15% by weight of the water-blended fuel composition of a water soluble, ashless, halogen-, boron-, and phosphorus-free, amine salt, distinct from component (C). In one embodiment, the composition further comprises (E) at least one cosurfactant distinct from component (C); in one embodiment, (F) at least one organic cetane improver; and in one embodiment, (G) at least one antifreeze. The invention also relates to a method for fueling an internal combustion engine comprising fueling said engine with the composition of the present invention.