Transport strike cripples Nepal

Thousands of passengers were stranded across Nepal on June 23 as transport operators locked public buses and other vehicles in garages, demanding a 35% hike in transport fares after recent increases in fuel prices. The state-run Nepal Oil Corporation raised diesel fuel and petrol prices by about 25% this month to cut losses due to surging global oil prices. Transport operators quickly raised public transport fares by between 25% and 35%, but the government allowed them only a 25% hike. Highways were empty as drivers stayed home at the start of the strike. Nepal imports about 800,000 tons of oil from India and owes millions of dollars to the state-run Indian Oil Corporation, the sole supplier of fuel. The latest crisis came about as political parties jockeyed to form a new government after elections for a constituent assembly in April. Similar oil price hikes have occurred in January after fierce protests brought the mountainous nation to a standstill for two days. (June 23, 2008)