By BINAJ GURUBACHARYA,Associated Press June 20, 2008

KATMANDU, Nepal - Students attacked several government vehicles and blocked traffic in Nepal's capital Friday to protest sharp rises in fuel prices, bringing transportation in the city to a standstill.

The students also demanded a 50-percent discount on public transportation fares.

It was the second day of violent protests pressing the government to immediately withdraw fuel price increases and reverse a recent decision that let public transport fees jump by as much as 35 percent.

College students in Katmandu walked out of classes and blocked major streets in Katmandu on Friday. They erected roadblocks and threw rocks at government vehicles.

Several cars were damaged but there were no reports of serious injuries.

State-owned oil import and distribution monopoly Nepal Oil Corp. raised oil product prices last week, saying it was necessary to reduce its losses and increase supplies.

The pump price of gasoline rose by 25 percent to 100 rupees per liter (US$5.70 per gallon), while diesel shot up 25 percent to 70 rupees a liter (US$3.80 a gallon).

Nepal imports all its oil products from neighboring India. Nepal Oil has in recent weeks struggled to pay Indian Oil Corp. because of its financial troubles, and fuel imports have dropped off as a result.