The invention discloses an energy-saving and environment-friendly alcohol-free vegetable oil fuel which comprises the following raw materials: vegetable oil, a POSS-phosphorylated vegetable oil polymer, methyl tertiary butyl ether, isopropanol, ethylene glycol, glycerol, absolute ethyl alcohol, magnesium powder, ferrocene and water. The invention also discloses a preparation method of the energy-saving and environment-friendly alcohol-free vegetable oil fuel, which comprises the following steps: S1, preparing methyl tert-butyl ether, isopropanol, ethylene glycol, glycerol and absolute ethyl alcohol into a mixing agent, and adding the mixing agent and the POSS-phosphorylated vegetable oil polymer into the vegetable oil to prepare a mixed solution; s2, adding water into the mixed solution, carrying out ultrasonic dispersion, and uniformly stirring to obtain a water-in-oil mixed solution; and S3, adding the magnesium powder and the ferrocene into the water-in-oil mixed solution, and uniformly stirring to obtain the magnesium-in-oil composite material. The vegetable oil fuel prepared by the invention is low in flash point, has better properties than liquefied gas, alcohol-based fuel and diesel fuel, and has the advantages of energy conservation, environmental protection, safety, cleanness, high efficiency and good economic benefit.