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NCL, a central lab, proposes use of DME as indigenous substitute for LPG

Analysis of this story by et_companies · 14 Mar 2026, 10:22 AM IST (about 2 months ago)

BULLISH(85%)
hold
+43.5RILOil & GasChemicals

AI Analysis

The auto sector is currently facing headwinds due to LNG supply risks and broader market corrections, as indicated by recent declines in Nifty Auto. However, the development of indigenous fuel alternatives like DME could indirectly influence the energy landscape and potentially impact fuel costs, which are a significant input for the auto sector.

Trading Insight

While the news is not directly about auto, a successful indigenous fuel program could stabilize energy costs in the long run, offering a potential tailwind. For now, maintain a cautious stance on auto stocks given current sector-specific risks.
Quick check: RIL neutral, NIFTY neutral.

Key Evidence

  • NCL is developing Dimethyl Ether (DME) as a domestic cooking fuel alternative to LPG.
  • The initiative aims to reduce reliance on imported fuel and save foreign exchange.
  • DME can be used with existing LPG infrastructure.
  • Scientists have developed a new catalyst and burner technology for DME.
  • Risk flag: Implementation challenges and scalability of DME production.

Affected Stocks

RILReliance Industries Limited
Positive

With its vast petrochemical and refining capabilities, RIL could be a key player in DME production and distribution.

Sources and updates

Original source: et_companies
Published: 14 Mar 2026, 10:22 AM IST
Last updated on Anadi News: 14 Mar 2026, 11:25 AM IST

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