In India, Gujarat was the first state to make commercial use of biodiesel in buses, but it reverted to regular diesel within months. The Gujarat State Road Transport Corporation contends it had to discontinue biodiesel because of lack of supply. The biodiesel was made by blending diesel with jatropha oil, supplied by Gujarat Oleo Chem Ltd (GOCL). The fuel was distributed by the Indian Oil Corporation (IOC). But IOC stopped supplies after a fight over pricing with GOCL. The Centre stipulates biodiesel be bought at Rs 25 per litre which GOCL found unviable as it spends Rs 22 to Rs 28 per litre on producing jatropha oil.
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