Nepal erupts in protests after midnight fuel price hike

By IANS

Kathmandu : Protests erupted in Nepal and the capital turned into a battlefield Tuesday after Prime Minister Girija Prasad Koirala’s coalition government increased fuel prices from midnight, the third such hike in three months.


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The student wings of the seven ruling parties began the protests before college campuses in the Kathmandu valley and outer towns from early morning, stopping vehicles and demanding the resignation of Commerce, Industry and Civil Supplies Minister Shyam Sundar Gupta.

By noon, common citizens had joined the protests, smashing over a dozen vehicles, blocking roads by burning tyres and vowing to keep up the agitation till the government rolled the prices back.

Nepal Oil Corporation (NOC) increased the prices of diesel, cooking gas and kerosene Monday night by nine to 20 percent to match the rising international market prices and cut down the monthly loss of millions of rupees it was incurring due to its earlier policy of subsidies.

Diesel will now cost NRs.61 per litre, dearer by NRs.5, while kerosene will cost NRs.60 from NRs.51. Cooking gas will cost NRs.1,250 per cylinder, up from NRs.1,100.

For almost a year, Nepal has been grappling with an acute fuel scarcity after it failed to pay Indian Oil Corporation, from whom it imports fuel, and the Indian agency began slashing supplies.

NOC says even after two hikes, it has been incurring a monthly loss of NRs.236 million.

Despite the midnight hike, it will continue to incur a monthly loss.

Mobs hurled bricks at passing vehicles and brought traffic to a standstill in major areas of the capital.

Protests also started in Butwal, Pokharam, Biratnagar and other towns.

In Biratnagar, Koirala’s hometown, protesters also shut down shops, markets and educational institutions.

The seven major student organisations said they would begin consultations in the evening to decide on their future strategy.

The protests come when the election is round the corner and the Election Commission has enforced a code of conduct.

“It is a ploy by the government to foment trouble,” said Dipendra Lama, member of a new party, Sa-Shakti Nepal, which will contest the April 10 election.

“It doesn’t want to hold the election and is trying to create a law and order situation so that the polls will have to be postponed again.”

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