What Is DME and Can It Replace LPG in Indian Kitchens?

Published on March 24, 2026 | 7 min read

In India, Dimethyl Ether or DME is emerging as a credible alternative to LPG. DME is a synthetic fuel that burns cleaner, uses the same cylinders and can be produced domestically from biomass, natural gas or even industrial carbon emissions.

When the Strait of Hormuz crisis of February 2026 disrupted LPG shipments into India and cylinder prices hit ₹913 in Delhi, scientists at CSIR-National Chemical Laboratory in Pune had already been working on DME for two decades. Their timing could not be more relevant.

What Is DME?

DME is a clean-burning synthetic fuel that emits much lower levels of soot, nitrogen oxides, sulphur oxides and particulate matter compared to conventional fuels. At the same time, it has comparable thermal efficiency, can be produced from natural gas, coal, biomass or from captured carbon dioxide. At room temperature, DME is a gas. Under moderate pressure, it liquefies, behaving very similarly to LPG in storage and transportation. This physical compatibility with existing LPG infrastructure is the primary reason it is attracting serious policy attention right now.

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DME vs LPG: Differences

Parameter	DME	LPG
Chemical formula	CH3-O-CH3	C3H8 / C4H10
Energy density	28.9 MJ/kg	46 MJ/kg
Origin	Synthetic — from biomass, gas, CO2	Fossil fuel — crude refining
Soot emission	None	Low but present
NOx and SOx	Very low	Low
Infrastructure compatibility	Same cylinders, minor modifications	Existing network
Toxicity	Non-toxic	Non-toxic
Current India price	Not yet commercially available	₹913 per 14.2 kg cylinder (Delhi, March 2026)
BIS blending standard	IS 18698:2024 — up to 20% with LPG	Not applicable

How Is It Produced?

DME can be made two ways. The common route converts syngas (mix of carbon monoxide and hydrogen) into methanol, which is then dehydrated into DME using a catalyst. The more advanced direct synthesis route produces DME from syngas in a single reactor step. CSIR-NCL's technology converts methanol into DME using a highly active, cost-effective indigenous catalyst. The process produces DME at around 10 bar pressure, allowing it to be directly filled into conventional LPG cylinders.

The BIS Standard and What It Means

The Bureau of Indian Standards (BIS) has issued standard IS 18698:2024, allowing up to 20% blending of DME with LPG for domestic, commercial and industrial use. Blending up to 8% requires no modification to existing cylinders, regulators, hoses or burners. CSIR-NCL has also developed a patented burner prototype capable of operating from 100% LPG to 100% DME and any blend in between, tested for efficiency at the LPG Equipment Research Centre in Bengaluru. The Ministry of Petroleum and Natural Gas is engaged with this transition through its energy security mandate under Atmanirbhar Bharat.

Scale: Where India Stands Today

Metric	FY2025 Status
India total LPG consumption	~31 million tonnes (PPAC, FY2024-25)
India domestic LPG production	~13 million tonnes — 40% of demand (PPAC, FY2024-25)
India LPG imports (2025)	~27 million tonnes — up from 13.5 million tonnes in 2011
Import dependence	~60% of domestic demand, up from 47% in 2015
Daily LPG consumption	~80,000 tonnes per day, over 85% used by households
Strategic LPG storage capacity	~1.6 lakh tonnes — equal to just 2 days of consumption
CSIR-NCL DME pilot production	250 kg per day (CSIR-NCL, March 2026)
DME needed for 8% LPG substitution	~2,200 tonnes per day (derived from 31 MMT annual consumption)
Demonstration plant target	2.5 tonnes per day — planned with ONGC in 6–9 months
Eventual commercial plant size	50–100 tonnes per day
Potential forex saving at 8% substitution	₹9,500 crore annually (CSIR-NCL estimate)

Globally, China leads DME adoption with blending, already integrated into residential city gas supply. Japan uses DME blends in commercial transport. Both countries built the ecosystem through sustained public-private investment over a decade. This roadmap India is now beginning to follow.

Is DME a Realistic LPG Replacement Today?

Not yet for households, but the foundations are being laid. The technology readiness level of CSIR-NCL's process is currently 7 to 8 on a scale of 10. The demonstration plant with ONGC, targeted within 6 to 9 months, is the next critical milestone. Commercial plants of 50 to 100 tonnes per day could follow if that validation succeeds. For the 10.5 crore Ujjwala scheme households bearing the sharpest burden of LPG price hikes, DME blending at 8%, requiring zero infrastructure change, seems to be a near-term realistic entry point.

What Does This Mean for Households?

Right now: No action needed. DME is not yet available in retail cylinders. In 1–2 years: If the ONGC demonstration plant validates, blended DME-LPG cylinders could enter pilot distribution in select cities. Will it be cheaper? Potentially yes. Domestic production from biomass or waste eliminates import costs and foreign exchange exposure. However, pricing will depend on scale, feedstock cost, and government subsidy policy — none of which are determined yet. Will cylinders need to change? Not for 8% blending. The BIS standard IS 18698:2024 ensures existing equipment works without modification at that blend level.

Adoption Timeline

Phase	Timeline	Milestone
Current	March 2026	250 kg/day pilot, BIS standard IS 18698:2024 in place
Near term	6–9 months	2.5 tonne/day demo plant with ONGC
Medium term	2–3 years	Commercial plant at 50–100 tonne/day
Long term	5+ years	Meaningful share of national LPG blending

Sources: CSIR-NCL press release, March 13, 2026 | Chemical Industry Digest, March 2026 | ANI News, March 2026 | BIS standard IS 18698:2024 | Ministry of Petroleum and Natural Gas energy security framework.

Frequently Asked Questions

###1) What is DME in simple terms? A clean-burning synthetic cooking fuel that works like LPG, can use the same cylinders, and is made domestically from biomass, natural gas, or captured CO2.

2) Is DME available in India right now?

No. It is currently at pilot stage producing 250 kg per day. Household availability is at least 2 to 3 years away depending on how fast the demonstration plant scales.

3) Will DME make cooking gas cheaper?

Possibly yes. Domestic production removes import dependence and foreign exchange costs. Final pricing depends on scale and government policy.

4) Is DME safe for households?

Yes. It is non-toxic, does not form explosive peroxides, and has an established industrial safety record globally as an aerosol propellant.

5) What is BIS standard IS 18698:2024?

The Bureau of Indian Standards notification issued in 2024 that permits up to 20% blending of DME with LPG. Up to 8% blending needs zero changes to existing household equipment.

6) Who is producing DME in India?

CSIR-NCL leads with the pilot plant in Pune. CSIR-IICT and BHEL are developing a CO2-to-DME route. Godavari Bio-refineries launched a CO2-to-DME pilot in December 2025. ONGC and IOC are in discussions for commercial scale-up.

About Author

Pradnya Surana

Sub-Editor

is an engineering and management graduate with 12 years of experience in India’s leading banks. With a natural flair for writing and a passion for all things finance, she reinvented herself as a financial writer. Her work reflects her ability to view the industry from both sides of the table, the financial service provider and the consumer. Experience in fast paced consumer facing roles adds depth, clarity and relevance to her writing.