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Sharp reactions met the government's decision to enforce the single-steepest hike in fuel prices on Wednesday, and it came under attack from its allies as well as opposition parties.
The government raised the price of petrol by Rs 5 per litre, diesel by Rs 3 and LPG by Rs 50 per cylinder.
BJP calls it economic terror
The Bharatiya Janata Party lashed out at the government for hiking the prices of petroleum products saying a 'directionless' United Progressive Alliance has unleashed 'economic terror' on the nation.
"This action is disastrous for the economy and all the claims made by the prime minister so far on the front on inflation has been proved to be a hoax," BJP spokesperson Rajiv Pratap Rudy told PTI.
He said the government which has run out of ideas has now unleashed this economic terror on the nation by increasing the prices of petrol, diesel and cooking gas.
"This decision is the last straw for the UPA government and the last nail on the coffin of the common man, whose interests it claim to champion," he added.
Left wants review of price hike
Angry over the 'steep hike' in fuel prices, the government's Left allies have demanded a review of the decision as it announced a week-long nationwide agitation to protest the 'unjustified burden' imposed on the common man.
Pointing out that the hike will "further aggravate" the inflationary situation, the parties said this "onslaught" on the people comes at a time when they are suffering from the steep rise in prices of all essential commodities.
"The Left parties demand that the UPA government review the decision on the price hikes. It should cut excise duties more and impose windfall taxes on private companies," Left leaders Prakash Karat, A B Bardhan, Debabrata Biswas and T J Chandrachoodan said in a joint statement.
Oil stocks soar
Shares of oil marketing firms on Wednesday surged by over 5 per cent on the Bombay Stock Exchange following the government's announcement to hike petrol and diesel prices by Rs 5 and Rs 3 a litre, respectively.
State-run oil marketing firms -- BPCL, HPCL and IOC -- witnessed a sharp surge in their shares after the announcement of the fuel price hike.
Auto stocks down
Stocks of auto makers bore the brunt of a hike in fuel prices on Wednesday. Marketmen said the rise in fuel prices might hamper demand for vehicles and reduce their earnings, which in turn would dampen demand for steel, a key input for auto industry.
Trinamool Cong calls for Bengal bandh
Trinamool Congress chief Mamata Banerjee on Wednesday said her party would observe a 12-hour bandh in West Bengal on Friday in protest against fuel price hike by the 'CPI-M-supported UPA government'.
Dubbing the fuel price hike by the UPA government as 'unfortunate and unprecedented', Banerjee said the UPA government has no right to rule.
Left Front calls 12-hour bandh
West Bengal's ruling Left Front called for a 12-hour state-wide bandh on Thursday to protest against the hike in the prices of petroleum products.
'We are asking the people of the state to respond to the bandh call to protest against the anti-people measure of the UPA government,' Left Front chairman and state CPI-M secretary Biman Bose told reporters.
He said the bandh would begin from 0600 hours on Thursday and would be preceded by a state-wide protest and rallies.
Tamil Nadu bandh
Condemning the Centre's decision to hike the prices of petroleum products, Left parties have called for a day-long bandh in Tamil Nadu on June 6.
Announcing this, CPI national secretary D Raja said the hike was 'unjustified'.
The hike would have a cascading effect on the prices of essential commodities, which had already gone up by manifold and would further push up the inflation rate, which had already touched eight per cent, Raja said.
Accusing the UPA government of not taking any steps to contain inflation and price rise, he said it was regrettable that the Centre had sought to hike the petroleum prices, without considering alternative proposals.
LDF calls hartal in Kerala
The CPI(M)-led ruling LDF in Kerala has called a dawn-to-dusk hartal in the state on Thursday in protest against the steep hike in petroleum prices by the UPA government.
A statement issued by LDF Convener Vaikom Viswan said that there was no justification for the current round of increase, which could have been avoided if the government had considered the alternative proposals submitted by the Left parties.
Akali Dal flays petro-price hike
The Shiromani Akali Dal said it would soon launch an organised protest against the fuel price hike that would spark huge inflation.
The rise of Rs 5 per litre in price of petrol, Rs 3 of diesel and Rs 50 of each domestic cooking gas cylinder would spark huge inflation, SAD chief and Punjab Chief Minister Prakash Singh Badal said.
Badal said the poor were already hit by the rising prices and now the middle classes would also feel the pinch in their pockets.
RJD demands roll back of price hike
Rashtriya Janata Dal, the second largest constituent of the Congress-led UPA, joined the Left parties in demanding roll back of the hike in fuel prices and warned that it was a "step towards death warrant" of the ruling alliance.
Party General Secretary Vijay Krishna described the move as "unfortunate" and asked Prime Minister Manmohan Singh not to ignore the opposition to the decision and review it immediately.