Sasol isomerized paraffinic kerosene (IPK) is a coal-derived synthetic fuel under consideration as a blending stock with JP-8 for use in military equipment. However, Sasol IPK is a low ignition quality fuel with derived cetane number (DCN) of 31. The proper use of such alternative fuels in internal combustion engines (ICEs) requires the modification in control strategies to operate engines efficiently. With computational cycle simulation coupled with surrogate fuel mechanism, the engine development process is proved to be very effective. Therefore, a methodology to formulate Sasol IPK surrogate fuels for diesel engine application using Ignition Quality Tester (IQT) is developed. An in-house developed MATLAB code is used to formulate the appropriate mixture blends, also known as surrogate fuel. And Aspen HYSYS is used to emulate the distillation curve of the surrogate fuels. The properties of the surrogate fuels are compared to those of the target Sasol IPK fuel. The DCNs of surrogate fuels are measured in the IQT and compared with the target Sasol IPK fuel at the standard condition. Furthermore, the ignition delay, combustion gas pressure, and rate of heat release of Sasol IPK and its formulated surrogate fuels are analyzed and compared at five different charge temperatures. In addition, the apparent activation energies derived from chemical ignition delay of the surrogate fuel and Sasol IPK are determined and compared.