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KATHMANDU, Wednesday (AFP) At least one student was killed and two injured Tuesday when police opened fire in Butwal, west of here, during a protest against petroleum price rises, a radio report said.

"At least one student was killed and two others injured when police opened fire to disperse them in Butwal, west of here Tuesday," the private station KantipurOnline said.

Howver, the home ministry said the police opened fire to diserse a group of unruly students who tried to set fire to a bus.

"I have heard that police opened fire to disperse the unruly students but I have not received any reports on casualties," a ministry spokesman said.

Seven students' unions have been staging protest across Nepal against the petrol price rises.

As part of their protests, the students called a transport strike around Nepal Tuesday and staged a demonstration in Kathmandu and in Butwal, 215 kilometres (135 miles) west of the capital.

Last month state-run Nepal Oil Corporation raised fuel prices, citing higher international prices due to the Iraq war.

Petrol prices rose 7.69 percent, diesel by 33.96 percent, kerosene by 64.7 percent, liquid petroleum gas by 7.69 percent and aircraft fuel by 18.05 percent.

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