"We are unhappy. We will not accept it and demand its rollback," Mamata Banerjee, chief of Trinamool Congress, the second-largest constituent of the UPA said in Kolkata.
"If people do not mind, I will be most happy to withdraw support (to the UPA). If I withdraw support then other parties will provide support to them. And, then ask why we left the UPA which led to its collapse. People had misunderstood us when we had withdrawn support earlier."
The Trinamool Congress would take to the streets for 72 hours from Friday opposing the decisions, she said.
Demanding an immediate rollback in diesel prices, the Samajwadi Party, which provides outside support to the UPA, said, the decision is ill-timed.
"We demand immediate withdrawal of the hike as it will badly hit the common man and farmers," SP leader Kamal Farooqi said.
Their sharp reaction came after the government decided to hike diesel prices by Rs 5.62 per litre effective midnight tonight.
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The Cabinet Committee on Political Affairs, headed by Prime Minister Manmohan Singh, this evening decided to raise diesel prices.
It also decided to restrict supply of subsidised cooking gas to six cylinders per household in a year.
The BJP termed the price hike as a cruel joke and "mortal blow" to the common man and farmers and charged the government with conspiring with petrol 'mafia'.
"This is a cruel joke on the common man in the country. It has hit farmers hard during the peak paddy sowing season. We will not allow this hike. We will not allow this government to loot the common man like this," BJP Vice President Mukhtar Abbas Naqvi said.(MORE)