Protests at Nepal fuel price hike

By Charles Haviland
BBC News, Kathmandu

People are angry about a 25% petrol price increase

Shops are closed and vehicles are off the roads in Nepal's capital Kathmandu, as angry protests against steep fuel price rises continue for a second day.

Price hikes of up to 35% were announced on Friday but the government minister concerned has hinted that there may now be some reductions.

These are crippling price rises hitting one of Asia's poorest countries.

The basic retail cost of petrol has gone up by 25% at once, and by much more in some rural areas.

The price of paraffin, the commonest cooking fuel, has risen by a similar amount and that of diesel by 11%.

Barricades

Protestors, most of them young and some shouting support for the Maoist rebels, have been out in the streets and the city is now littered with burning tyres and road barricades.

Early on Sunday, which is usually a normal working day, all shops appear to be closed and the few cars which ventured out early on soon vanished from the streets.

On Saturday, protestors blocked all routes into and out of the city and attacked or burnt dozens of vehicles and buildings including petrol stations.

The government says price rises are necessary because of the debts the state oil corporation owes to its Indian counterpart but the minister for supplies has also accused the petroleum dealers' association of making the hikes too steep.

He says some marginal reductions will soon be announced.