A [(C(18)H(37))(2)N(+)(CH(3))(2)](3)[PW(12)O(40)] catalyst, assembled in an emulsion in diesel, can selectively oxidize the sulfur-containing molecules present in diesel into their corresponding sulfones by using H(2)O(2) as the oxidant under mild conditions. The sulfones can be readily separated from the diesel using an extractant, and the sulfur level of the desulfurized diesel can be lowered from about 500 ppm to 0.1 ppm without changing the properties of the diesel. The catalyst demonstrates high performance (>/=96 % efficiency of H(2)O(2), is easily recycled, and approximately 100 % selectivity to sulfones). Metastable emulsion droplets (water in oil) act like a homogeneous catalyst and are formed when the catalyst (as the surfactant) and H(2)O(2) (30 %) are mixed in the diesel. However, the catalyst can be separated from the diesel after demulsification.