Transport strike over fuel price cripples Nepal

By Gopal Sharma

KATHMANDU (Reuters) - Thousands of passengers were stranded across Nepal on Monday as transport operators locked public buses and other vehicles in garages demanding a 35 percent hike in transport fares after recent increases in fuel prices.

The state-run Nepal Oil Corporation raised diesel and petrol prices by about 25 percent this month to cut losses due to surging global oil prices.

Transport operators quickly raised public transport fares by between 25 and 35 percent, but the government allowed them only a 25 percent hike.

Operators say this was not enough.

"Transport fares have not gone up for the past eight years when fuel prices increased many times," said Saroj Sitaula, a Nepal Transport Entrepreneurs' National Federation official. It is an umbrella body of Nepali owners of buses, taxis and trucks.

"We can't run any vehicles with a mere 25 percent hike in fares," he said.

Highways were empty as drivers stayed home at the start of the strike.

Nepal imports about 800,000 tonnes of oil from India and owes millions of dollars to the state-run Indian Oil Corporation, the sole supplier of fuel.