Limited reserves of petroleum products are turning to be a major problem in developing countries. Hydroxy gas can be a solution for this problem when enriched with Air & Diesel. Hydrogen's physical and chemical properties make it a good candidate for a supplement fuel. At normal atmospheric conditions, hydrogen is a colorless and odorless gas. It is stable and coexists harmlessly with free oxygen until an input of energy drives the exothermic (heat releasing) reaction that forms water. The cell plates have an anode and a cathode. The electric current enters the anode and then passes to the cathode through the electrolyte. The anode and cathode are made of the same materials. The quantity of HHO should be 50% of total air intake .it must be continuous in nature with higher safety precaution by carrying out all respective tests. Current supply should be adequate to generate a required quantity of HHO. When the hydroxy gas is enriched with air in a diesel engine, the thermal efficiency for compression ratio 18 increases by 13.28% comparing to diesel combustion and the specific fuel consumption is reduced by 8.7% at full load condition.