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Nepal's Government Cancels Fuel Price Hike

Nepal's government has withdrawn fuel price increases after two days of protests that paralyzed the capital, Kathmandu.

Nepalese officials say the decision to cancel price rises for gasoline, diesel and kerosene was made at Sunday's Cabinet meeting.

Earlier Sunday, hundreds of demonstrators took to the streets and fought with police but no injuries were reported. However, several vehicles were vandalized.

The government of Prime Minister Girija Prasad Koirala raised fuel prices last week by as much as 25 percent.

The government said it had to act to reduce losses for the state-owned Nepal Oil Corporation. The company has a monopoly over imports and distribution of oil in the impoverished country.

Some information for this report was provided by AFP and AP.