Opposition strike over fuel prices hits life in India

Jul 5, 2010, 8:49 GMT

New Delhi - Transport services were disrupted, businesses were shut and incidents of violence were reported from across India Monday during a strike by opposition parties to protest an increase in prices of fuel.

The eastern metropolis of Kolkata and the financial capital of Mumbai were worst-hit during the protest, called separately by the Hindu-nationalist Bharatiya Janata Party (BJP) and the Communist parties.

Party activists held rallies, blocked roads and vandalized stores and establishments in states like Uttar Pradesh in the north, Bihar in the east and Kerala in the south to enforce the 12-hour strike that began at 6 am (0030 GMT).

Road and rail services were hit, and markets, banks, schools and colleges were shut in the affected states.

More than a 100 domestic flights were cancelled, and many trains were suspended in Mumbai and Kolkata, which saw a complete shutdown with deserted roads and a heavy police deployment.

BJP supporters put up roadblocks at key intersections in the capital, New Delhi, and tried to disrupt metro operations to prevent people from going to work.

Last month's increase in fuel prices by the United Progressive Alliance government was expected to add nearly 1 percentage point to the inflation rate, currently at more than 10 per cent.

The hike raised the price of petrol by 3.50 rupees (8 cents) a litre. Diesel prices increased 2 rupees a litre, and kerosene rose by 3 rupees.

Opposition lawmakers have criticized the 'anti-people economic policies' and threatened to escalate the protests unless the government rolled back the hike.

'Today, the entire country is witnessing massive protests during the Bharat Bandh [India Shutdown],' Arun Jaitley, a BJP leader and head of the opposition in the upper house of India's Parliament, said in Uttar Pradesh's capital, Lucknow, before being arrested by the police. 'The poor are under pressure because of the government's economic policies.'

Dozens of party supporters were injured in street clashes in the city while protestors also attacked rail commuters in neighbouring Bihar, the CNN-IBN network reported.

The strike was also felt in Bangalore, considered India's information-technology hub with technology firms closing operations for the day and people staying at home, fearing they would be stranded on their way to work.

The June 25 decision on hiking fuel prices was aimed at lowering India's budget deficit, which is forecast to hit 5.5 per cent of its gross domestic product by 2010-2011.

Opposition parties have held nationwide strikes in recent months against the ruling United Progressive Alliance government for its failure to control spiralling inflation.