India Can Cut LPG Import Burden With DME As West Asia Conflict Disrupts Supply

India's LPG import dependence has come under fresh focus amid the West Asia conflict, with supply disruptions through the Strait of Hormuz exposing how vulnerable the country remains to external shocks. As the world's second-largest LPG importer, India has seen pressure on cooking gas availability in recent days, prompting some households to turn to alternatives such as induction cooktops while the government says it is working to maintain adequate supply.

DME Emerges As A Domestic Alternative To Imported LPG

Amid the supply concerns, a new report has flagged dimethyl ether (DME) as a potential way for India to cut its dependence on imported LPG. According to the study, India could reduce LPG imports by around 6.3 million tonnes annually by blending LPG with 20 per cent DME, which can be produced domestically through coal gasification.

The report, titled Coal gasification for energy and chemical security, was released by EY-Parthenon and New Era Cleantech Solution Ltd, a domestic coal gasification company. It argues that DME can offer a practical partial substitute for imported LPG at a time when global energy supply routes remain under strain.

Also read: India warns Iran of consequences after 2 tankers attacked in Strait of Hormuz: Officials

What Is Dimethyl Ether And Why Is It Important?

The Council of Scientific and Industrial Research (CSIR) describes DME as a sustainable and eco-friendly fuel that can serve as a synthetically produced alternative fuel. It can be directly used in specially designed compression ignition diesel engines for multiple applications.

"Under normal atmospheric conditions, DME is a colourless gas. It is used extensively in the chemical industry and as an aerosol propellant, solvent, fuel, and refrigerant. DME exhibits comparable calorific value and similarity of its thermal efficiency to traditional fuels; It is a clean-burning fuel with low emission and low particulate matter," according to CSIR.

CSIR has also underlined that DME can play a direct role in India's cooking fuel mix.

"It also said that DME is suitable substitute or blending agent for LPG and can be used as a fuel in household cooking gas and industries."

The scientific body has further noted that DME can already be blended with LPG up to 20 per cent, and that various applications of the fuel are being developed around this threshold.

Report Says 20% Blending Can Cut Import Dependence

The EY-Parthenon and New Era Cleantech report states that "DME, producible from coal gasification, can partially substitute LPG imports". It adds that a 20 per cent DME blend in LPG could lower India's import dependence by roughly 6.3 million tonnes every year.

That projection has gained significance as India navigates volatility in global fuel supplies linked to the ongoing West Asia conflict and disruptions in the Strait of Hormuz, a critical maritime route for energy imports.

In a key regulatory step, the Bureau of Indian Standards (BIS) has already notified standards allowing up to 20 per cent DME-LPG blending in India, PTI reported. However, domestic production remains limited at present and is still largely at the pilot scale.

Policy Push Seen As Crucial For Scaling Domestic Production

Industry stakeholders say policy clarity will now determine whether DME can move from a promising substitute to a commercially viable solution for India's energy security.

"A clear blending policy will be key to unlocking investments and scaling domestic DME production," said Balasaheb Darade, MD of New Era Cleantech.

Countries with large coal reserves can produce DME domestically using coal gasification technologies. China currently dominates the sector and accounts for around 90 per cent of the world's DME production capacity, supported by its vast coal-to-chemicals industry.

For India, the report suggests DME may not fully replace LPG imports, but it could offer a significant domestic buffer at a time when geopolitical tensions are once again testing the country's fuel security.