The main opposition Bharatiya Janata Party (BJP) and the Left parties that prop up the central government have said they would oppose a petrol and diesel price hike announced Monday.

The BJP and the Left announced a nationwide agitation against the decision to raise the petrol price by Rs.2.50 a litre and diesel by Rs.2 a litre.

BJP vice president M. Venkaiah Naidu said the decision was "anti-poor and anti-farmer".

"This decision exposes the anti-poor face of the UPA (the ruling United Progressive Alliance) as the hikes will hit farmers and poorer sections badly. These people are already suffering a lot due to natural calamities," Naidu said in Chennai.

The cabinet Monday agreed to a proposal to increase fuel prices that will come into effect by midnight. Kerosene and cooking gas prices remained unchanged.

In a joint statement, the Communist Party of India-Marxist (CPI-M)-led Left parties said it would organise protests across the country June 28 to demand that the government reverses its decision.

"We call upon people all over the country to join together to register their strong protest by coming out into the streets and demonstrate their opposition on June 28," said the statement, issued jointly by CPI-M, the Communist Party of India (CPI), the Revolutionary Socialist Party (RSP) and the All India Forward Bloc.

"The Left parties call on the government to reverse the decision and take measures which can absorb the burden of the increased international oil prices," it said.

The Communists regretted that the UPA government had not considered its alternative suggestions to prevent the price hike and said the justifications given were "misplaced".

The Left's suggestions included cancellation of additional cess of 50 paise a litre of petrol for highways, making changes in the excise duty pattern so that it did not lead to a retail price hike and doing away with import parity in product price.

The Left had also proposed creation of a price stabilisation fund to meet global fluctuation in crude prices with the cess collected on indigenous crude amounting to Rs.54 billion a year.

It had sought a review of the duty drawback payment to petroleum product exporters by private refineries.

"While it is true that international oil prices have been rising, the government in the budget changed excise duties which led to an added burden of Rs.1.70 per litre of petrol and Rs.1.15 per litre of diesel," the Left pointed out in the statement.

"The road cess of Rs.1.50 has been increased by 50 paise to Rs.2," it said.

All trade unions affiliated to Left parties will take part in the protests, said CPI national secretary D. Raja.

"The Left parties do not agree with the government on increasing the prices of petrol and diesel. It will have a cascading effect on prices of essential commodities and it will be a huge burden on the common man, which in turn adversely affects the economy," Raja said.

The Communists said they were happy at the government's decision to leave the price of liquid petroleum gas (LPG) or cooking gas untouched.