India’s Ministry of Petroleum and Natural Gas has raised significant safety and material compatibility concerns regarding the blending of dimethyl ether (DME) with liquefied petroleum gas (LPG).
During the Monsoon Session of Parliament, Minister of State Suresh Gopi stated that the government currently has no plans to procure DME for such blending applications, effectively pausing domestic adoption of the fuel mix.
The remarks serve as a direct headwind for the DME market, which had been positioning itself as a cleaner, cost-effective additive to LPG.
By highlighting technical hurdles—specifically the risk of corrosion and seal degradation in existing distribution infrastructure—the ministry signals that regulatory approval for widespread blending remains distant.
This policy stance limits the immediate upside for DME producers who were banking on Indian demand growth to offset softer global industrial demand.
While commercial applications of LPG-DME blending exist in other jurisdictions, India’s cautious approach underscores the infrastructure challenges inherent in transitioning fuel mixes.