The combustion of liquid fuels emulsified with water have long generated interest in the internal combustion engine research community. Typically, these fuels consist of small quantities of water emulsified with ultrasonification or other mechanical methods into a pure or multicomponent hydrocarbon fuel. These emulsion fuels promise significant advantages over base liquid fuels, such as better fuel economy, colder combustion temperatures, less NOx emissions, and so on. However, a significant practical disadvantage of these fuels is that they are prone to phase separation after they have been prepared. Till date, an objective but economical method of identifying the various degrees of phase separation has not been identified. Present research presents such a method and shows its utilization in analyzing the stability of water and hydrocarbon fuel emulsions over time without the addition of chemical stabilizers. It is expected that present research will pave the way in establishing this method to study the stability of other specialized multicomponent fluids.