Business News

Strikes over fuel price rise disrupt life across India

Jun 6, 2008, 9:30 GMT

New Delhi - Life in India's eastern state of West Bengal and southern Andhra Pradesh was disrupted Friday after opposition parties called a daylong shutdown to protest a hike in fuel prices, officials said.

Demanding a rollback, the left-wing partners of the ruling United Progressive Alliance (UPA) launched weeklong protests on Thursday with a shutdown in the West Bengal, eastern Tripura and southern Kerala states, which they govern.

The strikes began a day after the UPA increased prices of petrol, diesel fuel and cooking gas 9.5 to 17 per cent.

West Bengal was in the grip of the second day of the strike, which disrupted road and rail transport and was called by the opposition Trinamool Congress party.

Railway authorities said they cancelled several trains and many long-distance trains were stranded at stations because of blockades put on the tracks by strike supporters.

Most shops and markets were closed, and there were few vehicles on roads in the state's cities, particularly in and around its capital, Kolkata. Schools, colleges and educational institutions also remained closed.

Meanwhile, the strike call by the opposition Telegu Desam Party evoked a successful response in Andhra Pradesh with businesses shutting down and thin attendance in offices.

Opposition parties like the Bharatiya Janata Party and communist parties also called for a statewide strike, and opposition activists from the held protests and sit-ins around Andhra Pradesh.

A near-shutdown was seen in the state capital, Hyderabad, and the other main cities, including Vishakapatnam, Vijaywada, Guntur, Kakinada, Tirupati and Medak, the IANS news agency reported.

Other news outlets reported that strikers had laid siege at state-run bus depots and threw stones at buses to stop road transport in the state.

Local train service was also disrupted in India's financial capital of Mumbai because of protests by the opposition Hindu nationalist Shiv Sena party.

The demonstrators, who carried out a rail blockade at one of the main rail lines in Mumbai, were dispersed by police later in the day.

Politicians from left-wing and opposition parties said the rise in fuel prices would drive up India's already high inflation rate, recorded at 8.24 per cent for the week ending May 24, according to government statistics released Friday.

In a related development, Prime Minister Manmohan Singh directed his cabinet to adopt 'austerity measures' and cut all wasteful expenditures, particularly on foreign travel, the Hindu newspaper reported.

The Congress Party-led UPA came to power in 2004, promising to alleviate economic hardships for the poor and farmers, but it has lost several key state elections, and surging inflation and now the fuel price hikes were expected to have a negative impact on its future electoral prospects.

A spate of state elections are scheduled over the next few months, and general elections are due in 2009.



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