They added that at least 13 other people were being treated

for gunshot wounds.

Police officials were not immediately available to comment but

Ethiopian Information Minister Berhan Hailu blamed the country's main opposition group, the Coalition for Unity and Democracy (CUD) for instigating the violence.

"The CUD has called for these demonstrations," he said.

"It is not a hidden agenda. It is part of a plan to disrupt the peace and stability of this country. The incident today is a continuation of previous disruptions."

Berhan declined to comment on casualty figures.

Tuesday's violence took place a day after police arrested 30 taxi drivers and revoked their licences for taking part in renewed protests against the disputed 15 May elections.

Protests against alleged electoral fraud in June saw police kill at least 42 people.
 
Legal action

The riots began on the day the government threatened legal action against the main opposition Coalition for Unity and Democracy, or CUD.

The party has been boycotting Ethiopia's lower house of parliament, saying it wants a solution to the contested results of the May parliamentary election before taking up its seats.

Opposition parties have claimed that hundreds of their supporters and members have been arrested in the past two months.
 
"Taking the CUD to court for its stance against the constitution is timely," the government said in a statement.

Riots subsided later on Tuesday after hundreds of riot police reinforcements were deployed.

Businesses, however, remained shut in Merketo as smoke billowed from tyres burning on the streets that were also littered with broken glass.