By Mohammed Ghobari SANAA (Reuters) - Talks on forming a new Yemeni government collapsed on Sunday over demands by Shi'ite Muslim Houthis to restore fuel subsidies cut by President Abd-Rabbu Mansour Hadi, officials said, and further demonstrations in the capital Sanaa were expected. The Houthis, who have been fighting for years for more power for their Zaydi Shi'ite Muslim sect in north Yemen, have massed tens of thousands of supporters on the outskirts of Sanaa to press the government to quit and to restore fuel subsidies. The government offered on Saturday to resign within a month to pave the way for a technocrat administration that would review the fuel subsidy issue, but officials said the Houthis had demanded an immediate reinstatement of the subsidies.
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