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Angry consumers in India protest fuel prices

Thu Jun 5, 2008 6:31 AM EDT
world-news, business, asia, price, hikes, fuel-price, price-hikes, fuel-price-hikes
Ramola Talwar Badam, Associated Press Writer
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showing 1 of 3 photos
<p>India?s opposition Bharatiya Janata Party activists burn an effigy of the ruling United Progressive Alliance coalition government against hike in fuel prices, in Jammu, India, Thursday, June 5, 2008. Soaring oil costs forced India and Malaysia to announce gasoline price hikes Wednesday as the two Asian countries struggle under the growing burden of subsidies for the motor fuel. (AP Photo/Channi Anand)</p>

India?s opposition Bharatiya Janata Party activists burn an effigy of the ruling United Progressive Alliance coalition government against hike in fuel prices, in Jammu, India, Thursday, June 5, 2008. Soaring oil costs forced India and Malaysia to announce gasoline price hikes Wednesday as the two Asian countries struggle under the growing burden of subsidies for the motor fuel. (AP Photo/Channi Anand)

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MUMBAI — Angry consumers blocked rail tracks and roads and shut down businesses in parts of India for a second day Friday to protest a hike in fuel prices by the government, while Malaysia defended its decision to end fuel subsidies.

Indian police detained 20 activists from a powerful hard-line Hindu party called Shiv Sena after they disrupted train services in a Mumbai suburb, said Ashok Singh, a railway spokesman.

In Malaysia an opposition party held small protests Thursday to denounce that country's sudden fuel price rises as excessive and a burden for the poor after the government's move earlier this week to end heavy subsidies. A coalition of opposition parties and non-governmental groups has called for nationwide rallies and a major demonstration in Kuala Lumpur on July 12.

India's federal and state governments scrambled to contain the protests there. The federal petroleum minister canceled a trip to Japan for the G-8 summit, The Press Trust of India news agency reported.

Several states lowered local sales taxes to lessen the impact of the rise in prices of gasoline, diesel and cooking gas.

India's government hiked gasoline prices by about 13 cents and diesel prices 8 cents for a liter (about one-fourth gallon) on Wednesday to partially offset soaring international oil prices. Fuel prices vary between states, which also impose their own taxes.

The price of cooking gas went up by about $1.25 per 31-pound cylinder.

About 300 million of India's 1.1 billion people live on less then a dollar a day. Millions of others live on the state-set minimum daily wage of $1.60 and cannot afford cooking gas at all.

But for a middle class family with a combined income that may range from $119 to US$238, higher fuel and cooking gas prices have a significant impact on household budgets.

On Friday, police used water cannons to disperse demonstrators when the opposition Bharatiya Janata Party held a protest in India's capital, New Delhi.

Worst-hit was West Bengal state in eastern India, where schools and businesses were closed and several trains were delayed or canceled for a second day Friday, said Raj Kanojia, a police inspector-general.

Supporters of opposition Trinamool Congress pulled commuters out of cabs to enforce the party's 12-hour strike call in Calcutta, the state capital. They carried placards demanding Prime Minister Manmohan Singh's government resign for hiking the fuel prices.

On Thursday, West Bengal's ruling communist parties had called for a daylong strike that saw a near-complete shutdown of the state.

Angry protests also closed down several parts of the southern state of Andhra Pradesh, while shops and businesses in several areas of state capital, Hyderabad, remained shut Friday.

In Malaysia on Friday, Domestic Trade Minister Shahrir Samad defended the end of subsidies.

"I think it's wise," Shahrir told reporters. "It's the first time ever we can come to grip with the subsidy system."

The pump price of gasoline rose Thursday by a whopping 41 percent to 87 cents a liter, or $3.30 a gallon. Diesel prices shot up 63 percent to 80 cents per liter.

© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Regions: Malaysia , Indonesia , India , Taiwan , Sri Lanka
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bluecollarbytes

"In Malaysia — which had some of Southeast Asia's lowest gasoline prices — gasoline jumped from the equivalent of $2.32 a gallon to $3.31 a gallon."

"In India, gasoline was raised 5 rupees per liter. In New Delhi, that lifted the pump prices to 50 rupees a liter, or $4.56 a gallon. Fuel prices vary between states, which also impose their own taxes. Singh has urged states to lower taxes to ease the burden for the people."

Europeans pay $8-10 per gallon. It's high time for India and Malaysia to join the 'real world' and pay their fair share.

  • 1 vote
Reply#1 - Thu Jun 5, 2008 10:49 AM EDT
Lair

Demand Destruction anyone?

  • 1 vote
Reply#2 - Thu Jun 5, 2008 11:04 AM EDT
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