Nepalis protest at oil price rises

Nepalis protest at oil price rises

By Sushil Sharma
BBC correspondent in Kathmandu

Several hundred people have taken part in demonstrations across Nepal to protest against a rise in the price of oil.

All of Nepal's oil is imported

The government increased the price of petrol and other petroleum products by up to 65%.

It said the international supply situation and the losses incurred by the state-run Nepal Oil Corporation prompted the step.

But critics say there was no justification for the move.

Separate demonstrations took place on Thursday, organised by opposition parties who have threatened to launch a mass agitation to force the government to withdraw the increase.

A number of student organisations also joined the protests.

Poor affected

The opposition says the government move would hit ordinary people hard.

There has been an eight per cent increase in the price of petrol but kerosene prices have been increased by 65%.

Kerosene is widely used by the poor for cooking.

There has also been a big increase in the price of diesel, which is used mostly by public transport.

The authorities said that the international supply situation necessitated the move.

The increase, they say, is also needed to offset the losses incurred by the state-run Nepal Oil Corporation.

They also expect the move to check the smuggling of petroleum products into Indian towns across the border, where the price was higher.

Nepal imports all its oil and a rise in prices had been expected after war broke out in Iraq.

The price increase could affect plans to revive the country's economy, which has been affected over the past several years because of the Maoist insurgency.

Hopes for a revival had been raised after the government and the rebels announced a cease-fire two months ago to clear way for peace talks.