|PIC1|Malaysia's prime minister ruled out any more increases in fuel prices this year to try to contain growing public anger and pressure over soaring fuel costs mounted on other governments in Asia and Europe.

In the latest protests since a global surge in world crude oil prices, which touched a record $139 a barrel last week, Thai truck drivers staged a half-day strike to seek government help.

Spanish and Portuguese truck drivers pressed on with strikes they began on Monday, blocking deliveries and prompting some consumers to stockpile food and fuel. Spain's car industry said it had been paralysed because of the protests.

Lisbon's main Portela airport diverted airlines to other airfields to refuel, saying it could supply only emergency, military and state flights. Some flights were delayed but none were cancelled, Portugal's airport authority said.

In Asia, where many countries are net crude importers, governments have been forced to cut fuel subsidies and let pump prices climb, putting a squeeze on households already struggling with higher costs of basic food such as rice.

Malaysia followed India, Indonesia, Taiwan and Sri Lanka by raising pump prices last week, provoking a public outcry and protests. On Monday, Nepal became the latest Asian nation to rise prices to stem losses of a state firm.

"The government feels that the people are still trying to adjust to the high oil price situation," Malaysian Prime Minister Abdullah Ahmad Badawi said in a statement.

"As such, the cabinet decided that there will be no further increase in petrol and diesel prices this year."

Malaysia is Asia's largest net oil exporter, earning 250 million ringgit (39.2 million pounds) a year in revenue for every $1 rise in crude prices. Petrol prices were increased by 41 percent and diesel 63 percent last week.

ANGRY TRUCK DRIVERS

Elsewhere in Asia, thousands of Thai truck drivers staged a half-day strike and transport groups said they were ready to block roads into the capital, Bangkok, next week.

"If the government doesn't meet our demands by June 17, we will mobilise our trucks in Bangkok," Thongyu Khongkan, secretary-general of the Land Transport Federation of Thailand, which has 400,000 trucks under its banner, said.

Demands include a discount of 3-baht ($0.09) per litre of diesel for six months, as well as cheap loans to convert engines to compressed natural gas, he said.

The national air carrier, Thai Airways International, raised its fuel surcharges by up to 100 percent on Wednesday due to the rising cost of jet fuel.

The pressure has also been felt by the Indonesian government, which raised fuel prices by an average of nearly 30 percent last month to try to cut its fuel subsidy bill.

Energy Minister Purnomo Yusgiantoro said the government may drop a plan to introduce rationing of subsidised gasoline for motorcycles and public transport because the scheme is too difficult and expensive to administer.

"There are various reasons, including the cost, which is very expensive," he said.

In South Korea, truck drivers voted to strike on Monday, ignoring a $10.2 billion government aid package designed to cushion the impact of fuel price rises. Producer price inflation in the world's fifth-largest crude oil importer was near a 10-year high last month.

PROBLEMS PILE UP

Problems for governments are also growing in Europe, where Portuguese and Spanish drivers followed their French counterparts by going on strike this week.

Car makers association Anfac said that by Thursday all 18 car factories in Spain would be off line because of a lack of parts and fuel. They produce 18,000 vehicles a day and account for about 5 percent of Spain's gross domestic product.

Some parts of Spain are already suffering fuel shortages after protesters picketed fuel depots and many market stall holders - particularly traders in fruit, vegetables and fish - say they have supplies only for another day or two.

On Tuesday, a striking truck driver was run over by a van and killed in southern Spain and a striker died in Portugal as he tried to stop a truck on a road north of the capital Lisbon.

Retailers in Portugal have said food stocks at supermarkets are beginning to run out, and several petrol stations in Lisbon ran out of petrol on Wednesday. Long queues formed at others.

Dutch truck drivers said they would limit speed to 50 kph (30 mph) on a number of Dutch highways on Thursday to press calls for a diesel excise duty not to be raised. They also want a system to stabilise diesel prices by lowering duties when oil prices rise and raising them when they fall.