Nicaragua Students Clash with Police Over Oil Costs
Thousands of Nicaraguan students clashed with police on Monday when they protested transportation and food costs, while the nation's mayors challenged the president to solve the problems or resign.

At least two police officers and two students were injured in clashes in the capital, officials said, as protesters reportedly launched homemade grenades and set fire to police motorcycles and a bus.

Rising world oil prices lie at the heart of the protests. They began more than a week ago, when bus companies announced a rate hike to about 18 cents from 15 cents due largely to higher fuel costs.

Crude prices are also blamed for rising inflation in Nicaragua, the poorest country in Central America.

Press reports said students and peasants also took to the streets in the northern city of Matagalpa on Monday.

President Enrique Bolaños, a conservative, has refused to authorize government subsidies to avoid the bus rate hikes, as local officials, students and transport companies have requested. He calls the protests politically motivated.

On Monday, Nicaragua's 152 mayors, most from the political opposition, demanded that he take measures to reduce the impact of oil prices on basic goods and transportation.

"If Bolaños will not or cannot assume the responsibilities for which he was elected, with all respect and seriousness we ask him to resign his post," the mayors' association said.

Nicaragua's president rules out resignation
Bolaños reiterated Tuesday that he will not resign after meeting with about 5,000 protesters.

At a press conference after meeting with the opposition, Bolaños said he has no intention to resign.

He added that there were no magical solutions to the country's energy problem, and under the present conditions, it is impossible to solve the crisis.

The head of state said he tried to talk with the protesters, but instead there were insults and violence.

Earlier, while Bolaños, his family and his cabinet members came out to meet with the protesters, they were met with hurled rocks and other objects.

One rock struck and slightly injured Bolaños' son, a 55-year-old businessman who was visiting from the United States.

The incident occurred following days of often-violent student protests over the government's failure to increase subsidies to offset a bus fare increase to 3 cordobas (18 US cents) from 2.5 cordobas (15 cents).

On Monday, 90 mayors, mostly from the Sandinista Front of National Liberation (FSLN), demanded that Bola┴os step down or offer a solution to the increase in the rates of public transportation services.