MUMBAI: Union Minister for Petroleum Murli Deora on Monday approved a price increase for ethanol in Maharashtra which will now be sold at Rs 21.50 a litre. Chief Minister Vilasrao Deshmukh has been pushing for an increase in the rate for ethanol after a demand from the State's sugar cooperatives and had met the Prime Minister in this regard last week. This decision was taken after a meeting between Mr. Deora and Mr. Deshmukh here on Monday. Proportion Before this, the price of ethanol was fixed by the Centre at Rs 19.50 to Rs 20.50. Mr Deshmukh has been also been demanding that the proportion of ethanol to be mixed with petrol should be increased to 10 per cent from the existing 5 per cent. The Centre is considering increasing the proportion of ethanol in petrol but a decision has not yet been taken. Prakash Naiknaware, managing director of Maharashtra State Co-Operative Sugar Factories Federation Ltd said the rate of Rs 21.50 will be frozen for three years and the rest of the charges for transport and taxes will be calculated above that.