Fresh protests in Nepal capital at fuel price hike

KATHMANDU (Reuters) - Taxis, buses and cars went off the streets in the Nepali capital on Wednesday, as hundreds of students burned tyres and blocked roads in new protests against a recent hike in fuel prices and transport fares, police said.

Last week, Nepal's state-run oil firm increased petrol and diesel prices by about 25 percent, to cut losses due to a global rise in fuel prices and meet a domestic shortage of fuel.

Transport operators immediately increased fares by 25 to 35 percent for taxis and buses, causing some protests.

But on Wednesday, scores of students took to the streets in Kathmandu, in a fresh demonstration.

"The fuel price increase must be rolled back immediately," said Dipak Bhattarai, president of the Free Students' Union.

Next to him, dozens of students burned tyres in the heart of the city to keep drivers off the roads during rush hour.

Authorities said the fuel price hike was necessary due to the sharp increase in global prices of crude oil.

Bhattarai said the government should at least allow a 50 percent discount in transport fares to students.

Students are allowed a 33 percent discount on fares at the moment, but Bhattarai said transport operators do not follow the rules.