An improved fuel additive formulation, method of use, and method of producing the fuel formulation are described. The improved fuel additive of the present invention comprises a mixture of nitroparaffins (comprising nitromethane, nitroethane, and nitropropane), and a combination of modified commercially available ester oil and/or a solubilizing agent, and/or toluene. The ratio of ester oil and/or solubilizing agent and/or toluence to nitroparaffin is preferably less than 20 volume percent, with nitroparaffins comprising the balance of the additive. A method of preparing and using the additive formulation is also provided.