The price of oil just refuses to come down and this is posing problems for millions of consumers all over the world. There are many people who are looking out for alternative types of fuel to drive their cars. They are just not able to cope with the increase in prices of oil and they also know that it shall not be too long before the natural oil reserves of the world will get exhausted.

So, what are the different types of alternative fuels that are available to us? There are many such fuels and they are, biodiesel, liquefied petroleum gas, compressed natural gas, liquefied natural gas, pure plant oils, electricity, methanol, ethanol and hydrogen. Of all these liquefied natural gas has been used by most of for ages and yet we do not know about it by its chemical name, propane. This has been used for a long period of time and the cooking gas that you use in your kitchen is propane.

There are some cars too that are running on this fuel. However, this fuel is not so cheap and it too has its limitations, since it also comes from natural resources and one day or the other, its supply will get depleted. In such circumstances, biodiesel seems to be the best alternative. It is relatively cheap and it has been successfully tested on many cars. There are many types of alternative fuels, but one should look at the future before deciding which one to adapt to.

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