Ajay Modi / New Delhi November 23, 2009, 0:57 IST

But, sugar firms want Rs 28 a litre.

Following the recent decision of the Union Cabinet to continue with the mandatory 5 per cent ethanol blending with petrol, oil marketing companies (OMCs) have agreed to increase the price of ethanol from Rs 21.50 to Rs 26 a litre for a year.