Govt withdraws fuel price hike (6:45 p.m.)

In the wake of nationwide protests, the government on Sunday withdrew the hike in the price of petroleum products.

A meeting of the Council of Ministers this evening decided to direct the Nepal Oil Corporation (NOC), the state-owned body that looks after supply of petroleum products, to withdraw the price hike.

The cabinet also formed a committee headed by former finance secretary Bhanu Acharya to work out new price set up of petroleum products.

Earlier in the afternoon, Minister for Industry, Commerce and Supplies, Hridayesh Tripathi, said at the House of Representatives that the government was ready to reconsider the hike in the petroleum products.

Citing the mounting losses of the NOC, the government announced massive increase the price of in petrol, diesel, kerosene, air turbine fuel, cooking gas on Friday. Price of petrol went up by 25.1 percent per litre, dieIsel by 10.95 percent per litre, kerosene by 23.21 percent, air turbine fuel by 38.87 and cooking gas by 11.31 percent per cylinder.

According to the cabinet decision, the price of the petroleum products will remain same as before Friday until next decision.

The price hike sparked furious protests throughout the country, prompting even the ruling parties to speak against the government decision. nepalnews.com mk Aug 20 06

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