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Yes, for diesel or denser based fuels such as vegetable oil, or kerosine, etc., Examples of heating these fuels go back to the early 1900's and even earlier. For similar reason you discussed above. However, heating gasoline or any variation of C8H18 will not work well without additional controls, as I explained why above. I ran my 1973 240D on vegi and diesel with ease. You can also "restructure" the diesel to gain better performance and mileage. My 240D was a dog otherwise, even with a standard transmission.
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