NEPAL: Protests in Nepal capital over fuel price.

Activists torched dozens of vehicles in Kathmandu on Sunday (August 20) in the second day of protest against an increase in prices of petroleum products, police and witnesses said. Police used batons to break up protests as hundreds of people also burned tyres and stopped traffic in the city, a police officer said. Dozens of protesters on Saturday (August 19) threw rocks and broke window panes of the home of Madhav Kumar Nepal, head of the Communist Party of Nepal (UML), the second biggest group in the multi-party government. But the leader was unhurt, his family said. Activists in the city, home to 1.5 million people, demanded the multi-party government -- formed in April after King Gyanendra was forced to relinquish power -- roll back the increase which was announced late on Friday (August 18). "We oppose the action of this People's government very much which has affected the very lives of the students and other labourers and peasants," said Prakash Aryal, student leader. "It's the demand of all of us for this people's government to take back the announcement of price hike," he added. The interim government raised retail prices of petroleum products by up to 38 percent saying it was necessary to cut the losses of Nepal Oil Corporation (NOC), the state-owned oil importing monopoly. Eight unions considered close to the Maoist rebels, including those of students, labourers, peasants, women and teachers, warned the government of more protests if it did not revoke its decision. They said higher fuel prices would increase transport costs for food and other commodities in the landlocked mountainous nation which largely depends on road links.

ITN Source | August 20, 2006

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