Protests in Nepal capital over fuel price rise

KATHMANDU, Aug 19 (Reuters) Hundreds of people burned tyres and stopped traffic in the Nepali capital, Kathmandu, today in protest against an increase in prices of petroleum products, witnesses said.

Activists in the hill-ringed city, home to 1.5 million people, demanded the multi-party government -- formed in April after King Gyanendra was forced to relinquish power -- roll back the increase which was announced late yesterday.

The interim government raised retail prices of petroleum products by up to 38 per cent saying it was necessary to cut the losses of Nepal Oil Corporation (NOC), the state-owned oil importing monopoly.

''Withdraw the price increase. We don't accept it,'' shouted protesters, mainly student activists, as traffic on major roads in the temple-studded city came to a standstill.

They said higher fuel prices would increase transport costs for food and other commodities in the landlocked mountainous nation which largely depends on road links.

''The government is not sensitive about the problems of the common people,'' said Basu Acharya, a student activist, standing near black smoke from burning tyres in front of a Kathmandu college.

Dozens of riot police stood nearby but did not intervene.

Reuters DKA GC1620