A method for reducing aqueous phase separation of an emulsion comprising ethanol-based fuel and a lubricating oil comprising molybdenum ester amide complex, comprising the step of adding to the lubricating oil a dispersant polyalkyl (meth) acrylate (DPMA) in an amount from about 0.01 to about 0.5% by weight of the lubricating oil, such that the weight ratio of molybdenum to DPMA is about 2.05 or less.