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NEW DELHI, June 17 (UPI) -- India's Petroleum and Natural Gas Ministry has approved a price increase for ethanol in western Maharashtra state.
Federal Minister for Petroleum and Natural Gas Murli Deora approved a price increase for ethanol in Maharashtra, which now will be sold at half a U.S. dollar per liter. Chief Minister Vilasrao Deshmukh has been pushing for an increase in the rate for ethanol after a demand from the state's sugar cooperatives, which had met the prime minister last week to press for their demand. This decision was made after a meeting Monday between Deora and Deshmukh.
The federal government is considering increasing the proportion of ethanol in gasoline by 10 percent, but a decision has not yet been made, Prakash Naiknaware, managing director of Maharashtra State Co-Operative Sugar Factories Federation Ltd., said.
India of late has allowed a 5 percent mix of ethanol in gasoline in various states, which is all set to increase to 10 percent to reduce the country's dependency on fossil fuels.
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