In the State of Kuwait, electricity and water desalination are produced from seven power plants that consist of stations containing steam turbine units, gas turbine units, or duel units. According to the ministry of water and electricity in the State of Kuwait, the total installation capacity for all power plants is 15,803 MW. All fuels used to operate the power plants are supplied by Kuwait National Petroleum Company (KNPC) and take the form of either gaseous or liquid. The gas fuel used is natural gas while the liquid fuels can be gas oil (diesel), crude oil, or heavy oil. All stations that are currently operating use diesel as part of their fuel supply chain apart from Shuwaikh Station which uses natural gas as fuel only. This research focuses on analyzing the diesel fuel used in six of Kuwait’s power stations during 2011 to 2014 in terms of quantity, cost, and alternation with biodiesel. It was found that the total barrels of diesel fuel used for the stations were: 10,246,899 barrels in 2011, 11,913,630 barrels in 2012, 9,237,306 barrels in 2013, and 11,153,661 barrels in 2014. The total cost spent for the diesel fuel supply was KD 179,218,263.5 in 2011, KD 208,369,388.7 in 2012, KD 161,560,481.9 in 2013, and KD 195,077,530.9 in 2014. Although biodiesel is currently unavailable in Kuwait, theoretical results showed that the percentage of fuel that could have been produced could have covered 4.66, 4.15, 4.91, and 5.17% respectively for the years 2011 to 2014 with a total cost saving of KD 23,704,763.380.