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July 6, 2010

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Indians strike over increase in fuel prices

TRANSPORTATION ground to a halt and businesses were closed in many parts of India yesterday as the main opposition parties led a strike to protest a government-imposed hike in fuel prices.

"Because of the obstruction caused by protesters, train services have been stopped in West Bengal state," said railroad spokesman Samir Goswami in Calcutta, the state's capital. Flights were also halted at Calcutta's airport, which serves domestic and international destinations.

Train and air services were affected in Mumbai, India's financial capital, where taxis went off the roads as protesters belonging to the Hindu nationalist Bharatiya Janata Party and Shiv Sena came out on the streets.

The opposition called the day-long protest after the federal government refused to roll back the 6.7 percent hike in fuel prices announced 10 days ago.

The unpopular price rise came as the government struggled to stem losses at state-run oil companies and tame the fiscal deficit while facing double digit inflation.

No major violence was reported in the country during the strike, although there were some minor scuffles between demonstrators and police.

Demonstrators and police also clashed in Lucknow in northern Uttar Pradesh, where two Hindu nationalist leaders, Arun Jaitley and Mukhtar Abbas Naqvi, were detained by police, said Surendra Srivastava, a police spokesman.

Thousands of people were stranded for hours as protesters stopped trains in West Bengal, Bihar and Andhra Pradesh states by blocking the railroad tracks.

There were also some minor disturbances in New Delhi, though businesses and schools remained open.

The government dismissed the strike as opposition posturing.

"Is this strike a constructive solution to the problem? Does it help poor people in any way?" Abhishek Manu Singhvi, a spokesman for the ruling Congress party said in New Delhi.

The government said the hike could save the state US$5.2 billion but exacerbate inflation.





 

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