Fuel price protests disrupt two Indian states

Indian police used water canon and batons in Kashmir on Monday to disperse hundreds of government employees protesting over fuel price rises, while a general strike also shut down the northeastern state of Assam.

Elsewhere in the country, though, life continued as normal as protests over last week's rise in fuel prices appeared to taper off.

India increased petrol and diesel prices by around 10 per cent last Wednesday, after the cost of subsidising fuel in the face of record-breaking crude prices had brought state oil companies close to bankruptcy.

With less than a year to go to elections, the government's communist allies and the opposition called for protests against the move, but many people complained that strikes in several states last week had only made a difficult situation worse.  The fuel price blow was also cushioned after several state governments announced duty cuts of between two and five percentage points, although Kashmir has not yet announced any duty cuts and Assam made only a tiny cut in sales tax.

In Kashmir, dozens of people were also detained after government employees gathered outside the office of the state's chief minister in the heart of Srinagar to protest against the fuel price rise.

"Roll back price of petrol, diesel and cooking gas," the protesters shouted before being dispersed by police.

A four-day strike called by private transport operators demanding an increase in passenger fares and freight charges also forced thousands of people to walk to work.

Offer rides

Officials said the government would deploy buses and other vehicles to offer rides after the strike threw about 75,000 vehicles off the roads across the state.

In the northeastern state of Assam, tribal groups called a 12-hour shutdown, or bandh, on Monday accusing the government of inept handling of oil prices. Offices, banks, shops and schools were closed and traffic stayed off the road.

"The government has no concern for the common people," the coalition of tribal groups from Assam's hill areas said in a statement. "This will force tribes into starvation."

The strike seemed to enjoy popular support.

"It is a genuine issue," said Naba Pathak, a government clerk in Guwahati. "And people irrespective of caste, religion and political affiliation should support this bandh."

Landlocked in one of India's remotest regions, much of Assam's supplies come from outside and a rise in fuel prices has a ripple effect on the prices of essential goods.  "The rise could be around 10 per cent on all commodities and on some items it could go up to 15 per cent as most items come from outside," said Mahabir Jain, president of the Chambers of Commerce in the state.

Public transport operators have also urged the state government to revise passenger fares quickly.

Inflation in India is already at a 3-½ year high of more than 8 per cent, and the fuel price hike will push it still higher, adding to the woes of the coalition government as elections approach.