The increasing industrialization and motorization of the world has led to a steep rise for the demand of petroleum products. Petroleum based fuels are obtained from limited reserves. These finite reserves are highly concentrated in certain regions of the world. Therefore, those countries not having these resources are facing a foreign exchange crisis, mainly due to the import of crude oil. Hence, it is necessary to look for alternative fuels, which can be produced from materials available within the country. In addition, the use of vegetable oil as fuel is less polluting than petroleum fuels. This paper reviews the production and characterization of vegetable oil as well as the experimental work carried out in various countries in this field. In addition, the scope and challenges being faced in this area of research are clearly described. (C) 2003 Elsevier Ltd. All rights reserved.