KATMANDU, Nepal, Aug. 20 (UPI) -- Nepal's government Sunday withdrew price hikes in gasoline and diesel fuel after thousands of protesters clashed with police.
The government raised prices Saturday in an effort to raise money for the state-owned Nepal Oil Corp., which owes $213 million to the Indian Oil Corp.
But the move sparked nationwide protests, with demonstrators clashing with police, blocking roads and vandalizing government property in the capital, Kathmandu, the independent Nepal News reported.
The price hikes were reversed at a Council of Ministers meeting Sunday night, the agency said.
The council also formed a committee to work out new price policy for petroleum products.
The retail price of gasoline had been raised 25 percent to $4.54 per gallon, while diesel was increased by 11 percent to $3.03 per gallon. Cooking gas was raised by 12 percent a cylinder.
