Street protests in India over fuel price hike

Demonstrators protested across India yesterday against a government move to reduce popular fuel subsidies which is expected to spur double-digit inflation.

The decision, which raised prices of gasoline, diesel, kerosene and cooking fuel from midnight last Friday is part of a move by the government to lower its deficit and slash huge subsidies it gives state-run oil firms.

Demonstrators from India's main opposition Bharatiya Janata Party (BJP) blocked junctions in the capital New Delhi to protest at the decision, snarling traffic in the city's commercial core.

"Down with the government," shouted the protesters, who turned out despite scorching summer heat as riot police gazed on.

The demonstrators burnt effigies of Prime Minister Manmohan Singh, architect of India's moves in the early 1990s to liberalise the country's economy.

In Kolkata, capital of Marxist-ruled West Bengal state, thousands of people were stranded as bus and taxi operators went on strike to protest against the hike.

Protesters in Kolkata staged marches, shouting: "Roll back the price increases".

Petrol stations also closed in the state to protest at the government's decision which pushed up petrol prices by an immediate 3.5 rupees a litre to over 50 rupees and diesel prices by two rupees a litre.

The Congress-led government announced last Friday it would end petrol subsidies immediately and completely lift them on diesel later.

It said it would retain subsidies on kerosene, used by the poor for lighting and cooking, but that its price would also rise.