"Even allowing the oil companies to hike the diesel prices to a small extent is a wrong decision," Karunanidhi whose party is a major constituent of the central government, said in a statement issued here.
He said the hike in diesel prices would have a cascading effect on the prices of other products with the poor and middle classes unable to bear the additional burden.
Urging New Delhi to reconsider its decision, he said only in September had the price of diesel been hiked by Rs.5.63 per litre.
Referring to the recommendation of a parliamentary committee to increase the number of subsidised rate cooking gas cylinders to 12 per year, Karunanidhi said the central government should bear the burden and provide one cylinder per month at a subsidised rate.