The present invention provides a method of producing a liquid fuel enabling production of middle distillate at a high yield from a feed oil containing paraffinic hydrocarbons having 20 to 100 carbon atoms as main components without losing the high cracking activity and also enabling provision of high quality gas oil included in the middle distillate.A feed oil containing paraffinic hydrocarbons having 20 to 100 carbon atoms as main components is subjected to hydrotreating in the present of a prespecified hydrotreating catalyst and under the conditions for hydrotreating including a temperature of 200 to 350° C., a liquid hourly space velocity of 0.1 to 5.0 h−1, and a partial pressure of hydrogen of 0.5 to 8 MPa to obtain an effluent oil, and then the effluent oil is fractionated to obtain middle distillate including a gas oil with a cetane number of 75 or over and a pour point of −27.5° C. or below at a yield of 55% or over against a total weight of the feed oil.