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 toluene. The ratio of ester oil and toluene 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.