Led by JK Shiv Sena chief Ashok Gupta, over 300 activists of the party and Dogra Front took out a protest rally and held anti-UPA government demonstrations in the city.
The agitators carried gas cylinders as a mark of protest.
"We demand immediate rollback of the government decision," Gupta told reporters.
Over 250 activists of Bhartiya Janta Yuva Morcha (BJYM) led by its state unit president Manish Sharma took to streets against the hike and blocked roads.
"We will intensify our agitation if the government fail to revoke the decisions," Sharma said.
Carrying gas cylinders on carts, BJP district unit led by Ravinder Sharma took out a protest rally and held demonstrations.
Jammu and Kashmir Democratic Front (JKDF) activists also staged demonstration over the issue.
The government yesterday hiked diesel price by Rs 5.63 per litre and capped supply of subsidised LPG to 6 cylinders per household in a year.