A liquid fuel composition suitable for use in an internal combustion engine is provided containing (a) from 50 to 90 % v/v of a C1-C4 alcohol; (b) from 10 to 50 % v/v of a Fischer-Tropsch derived naphtha; and optionally (c) up to 10 % v/v of a C3-C6 hydrocarbon component. A process for preparing a liquid fuel composition and a method of operating an internal combustion engine is also disclosed.