KATHMANDU (AFP) — Nepal's government reversed a fuel price hike on Wednesday after two days of nationwide protests and clashes in the capital, a minister said.
"During an informal meeting between the prime minister and other ministers we decided to revoke the price hike," Industry minister Shyam Sundar Gupta told AFP.
The protests began Tuesday after the government increased diesel prices by nine percent and kerosene prices by 19.6 percent.
The price rise was rolled back "taking into consideration people's sentiments and the upcoming elections," the minister said, referring to crucial polls planned for April 10 that will decide Nepal's political future.
Protests against the government were staged nationwide on Tuesday and Wednesday and Kathmandu saw dozens of clashes between stone-throwing student protesters and police.
Monday's late night price hike announcement was the third time the Nepal Oil Corp had boosted prices since October.
The oil monopoly relies on India for all its fuel supplies and the company has been selling products at a loss for years, building up millions of dollars debt to state-owned Indian Oil Corp.
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