Fuel price hike triggers protest in Nepalese capital

Student activists burned tires on roads and blocked traffic in Kathmandu to protest against a hefty increase in fuel prices, but many Nepalis hope the unpopular hike will at least mean smoother supplies. Nepal Oil Corporation (NOC) increased petrol and diesel fuel prices by about 25% to stem losses at the state-run oil company and help overcome a domestic fuel shortage. On June 10, transport operators announced a 30% hike in fares for long distance buses and 35% for taxis and buses operating on shorter routes with immediate effect. The cost of subsidizing the retail price had left NOC short of funds to buy sufficient quantities of fuel from India. But student protesters say the government should have arranged for relief to students as well as to poor people and looked for alternative energy sources to tide over the shortage before rushing with the price hike. (June 10, 2008)