Kathmandu - Protests erupted across Nepal Tuesday after
the government announced price increases of up to 15 per cent on some
petroleum products, citing continuing losses on their import and
distribution.
Students and labour organization activists burnt tyres and clashed
with police in the capital Kathmandu and several other cities and
towns across Nepal.
Police said at least two vehicles were set on fire in the capital
Kathmandu after protests turned violent and police were forced to
charge them with batons.
The Nepalese government increased prices of kerosene and liquefied
petroleum gas which are widely used for cooking by as much as 15 per
cent.
It also increased the price of diesel by about 10 per cent to 61
rupees a litre (95 cents). Diesel is widely used by most short and
long route buses and is likely to impact travellers.
The protests Tuesday brought normal vehicular traffic to a virtual
standstill in Kathmandu and along major highways in
south-eastern Nepal.
'Price increases are an attempt to put the burden of inefficient
state organizations on the common people,' student unions protesting
the price hike said in a statement. 'We urged the government to
immediately review its decision which has hit the poorer sections of
the society the most.'
This is the third time the government has increased prices of
petroleum products in three months.
The government says it is forced to increase the prices to pay the
debts owed by Nepal Oil Corporation for importing petroleum products
from India.
It also said the price of kerosene was raised to prevent it from
being mixed with petrol and diesel.
Nepal faced a severe fuel crisis for much of 2007 after the Indian
Oil Corporation cut supplies by nearly half when government-owned
Nepal Oil Corporation failed to pay nearly 2.5 billion rupees it owed
for importing the fuel.
Meanwhile, Nepal Oil said the price increases were dictated by
international oil prices.
'Prices of diesel, kerosene and cooking gas were revised because
of the increase in international oil prices,' the state-owned
corporation said. 'However, we will review the prices if they fall in
the international markets.'
© 2008 dpa - Deutsche Presse-Agentur 
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