Synthetic fuels are produced from synthesis gas in a four-stage reactor system with a single recycle loop providing the requisite thermal capacity to moderate the high heat release of the reactions and to provide the reactants and reaction environments for the efficient operation of the process. The first stage converts a portion of the synthesis gas to methanol, the second stage converts the methanol to dimethylether, the third stage converts the methanol and dimethylether to fuel and the fourth stage converts the high melting point component, durene, and other low volatility aromatic components such as tri- and tetra-methylbenzenes to high octane branched paraffins.