GP Koirala asked the rebels to lift the blockade
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Maoist rebels have agreed to lift a blockade of Nepalese cities after an appeal by the prime minister-designate.
The rebels, who have fought a 10-year insurgency, rejected an offer by King Gyanendra to restore parliament after weeks of protests against his rule.
They say they will wait to see what happens on Friday when parliament opens for the first time in four years.
The parties which led the protests have promised elections to a constituent assembly, a key rebel demand.
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The people have absolved the political parties of past incompetence, inefficiency and other sins in the larger national interest.
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Maoist leader Prachanda announced the rebel move at the request of the man the opposition parties have nominated to be prime minister, Girija Prasad Koirala, who said people had suffered under the Maoist blockade.
"We have withdrawn our call for a blockade in response to an appeal from the Nepali Congress president Girija Prasad Koirala... until the first meeting of the parliament," said a rebel statement.
Weeks of protest
The Maoists accused the political parties of betraying a recent agreement between them following the climb-down by the king.
There are still fuel shortages in the capital
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Fear of Maoist reprisals has prevented fuel from entering the capital and kept motor traffic from entering or leaving many towns.
Nepal has been paralysed by demonstrations and a nationwide strike as the opposition sought to force the king to reinstate democracy.
The king assumed direct powers in February 2005, saying opposition parties were failing to tackle the Maoists.
But critics say the situation with the rebels has not changed and there was no excuse for suspending democratic institutions.
The rebel blockade was introduced several weeks ago to support the protests against the monarchy.
On Tuesday thousands of Nepalis held a victory rally in Kathmandu after the king gave in to their demands to reinstate parliament.
Fourteen people were killed during the protests against the king. The opposition said it had called off further demonstrations and the strike.
Calls for a republic
But some protesters are so angry at the king that they want to abolish the monarchy and turn the country into a republic.
"Gyanendra, thief, leave the country," shouted some protesters who had gathered near the royal palace.
The capital is returning to normal after the crippling strike. Taxis are back on the streets, shops have reopened and mobile phone connections have been restored but there remains a high police presence.
Communist Party (UML) leader Madhav Kumar Nepal told the BBC the formation of a new government would be "the first step towards a constituent assembly", which would be tasked with redrawing the constitution.
But in a front-page editorial the English-language Kathmandu Post warned politicians that the public would not tolerate their squabbles in future.
It said: "The people have absolved the political parties of past incompetence, inefficiency and other sins in the larger national interest. However the people will not give them a second chance."
The US has welcomed the king's announcement and said he should now consider assuming a "ceremonial role".
More than 13,000 people have died in the Maoist insurgency. Violence has escalated since the rebels ended a truce in January - although they declared a ceasefire in Kathmandu this month as the mass street protests began.