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Page last updated at 12:56 GMT, Friday, 9 January 2009

India oil staff call off strike

Cars queue up at a petrol station in Delhi, India, on Friday Jan 9, 2009
Long queues had formed at petrol stations across India

A three-day strike by more than 50,000 workers at state-run oil firms that has crippled India has been called off.

There had been scenes of chaos across all of India's major cities as people struggled to get fuel.

The workers, who were demanding more pay, say they have decided to go back to work in the interests of the nation.

It has been reported that further talks between the government and union leaders will take place over the next few weeks to try to find a resolution.

As an added headache for the government, millions of lorry drivers are still on strike, affecting freight nationwide.

Army called in

Indian Oil Corp Chairman Sarthak Behuria said it would work through the weekend to fill empty pumps nationwide.

Officials had said more than 80% of petrol stations in major cities had run dry in the strike and flights from Delhi and Mumbai were also affected.

In Delhi, long queues of motorists formed outside petrol pumps and many put up signs saying they had run out of stock.

Many waited for several hours to get fuel and in some places, the motorists were told they could not get more than 10 litres.

Earlier, Oil Secretary RS Pandey was quoted by news agency Press Trust of India (PTI) as saying that the army had been called in to ensure the movement of oil cargo.

More than half the petrol stations were out of stock in the financial capital Mumbai, while in the eastern city of Calcutta officials had warned that supplies could dry up by the end of the day.

State-run firms control almost all of the energy sector in India.

Meanwhile, the strike by six million lorry workers which began early on Monday is continuing. The drivers are demanding cheaper fuel and an exemption from road tolls.

The indefinite transport strike at least lessened the demand for diesel. However, fruit and vegetable prices are beginning to rise.



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