New Delhi, July 3 Activists of Communist party of India and Socialist Unity Centre of India staged demonstrations against the increase in prices of petrol and diesel here on Friday.

Shouting slogans against the ruling Congress party, protesters demanded the government to roll back the hike.

"The prices of essential commodities like vegetable, pulses, sugar, rice will increase due to hike in petrol and diesel prices as transportation will become expensive. This is a slap on the face of public who voted for Congress. We strongly condemn the fuel prices hike and ask the government to roll back the hike," said Amarjeet Kaur, CPI's state secretary.

The hike will aid margins for state-owned refiners forced to sell at government-set prices, and may be only a prelude to greater free-market price reforms in next week's budget.

Activists of SUCI said that the fuel prices hike will increase the inflation rate.

"It is ironical that fuel prices have been hiked at a time when the government is announcing100 day agendas for the country. On one side the government is all set to come-up with packages to help capitalists overcome economic crisis and on the other hand it is increasing the inflation rate for the commoners," said Pratap Samal, SUCI's state secretary.

Fuel prices were last raised in June 2008, but they were cut in December and again in January as oil prices tumbled.

The crude oil prices have more than doubled since a February low, with second-quarter gains the highest since 1990.

Despite price increase, oil firms were likely to suffer a revenue loss of 560 billion rupees on sale of petrol, diesel, cooking gas and kerosene this fiscal. (ANI)