With the partners of the ruling UPA coalition crying foul, the spokesman of major constituent party Congress, Abhishek Singhvi sought a 'healing touch' from the government to the common man.
Mukherjee said the recent hike in petrol prices will have some impact on inflation, which is currently hovering close to the double-digit mark.
'Of course it will have some adverse impact on inflation. But the oil prices are going up and petrol is a decontrolled item,' he said.
Oil companies on Thursday raised petrol prices by Rs 1.80 per litre, citing the impact of rupee depreciation on the cost of crude oil imports. Following the increase, petrol in Delhi will cost Rs 68.64 a litre.
Replying to the question as to why the alliance partners were not consulted, Mukherjee said 'Nobody in the government knows... because petrol prices are increased by the petroleum companies, not by the government. Diesel, kerosene and gas are controlled items.'
Inflation in September stood at 9.72%, much above the Reserve Bank's comfort level of 5-6%.
Petrol prices were freed from government control in June last year.
The allies of the Congress-led UPA Coaltion on slammed the steep hike in the petrol price with a key partner Trinamool Congress talking in terms of pulling out of the Government as indications emerged that a partial rollback of the increase may be on the cards.
Trinamool Congress, the second largest constituent of the UPA with 18 MPs, held an emergency meeting of its Parliamentary Party and decided to withdraw their support.
However, their leader and the West Bengal Chief Minister Mamata Banerjee stayed such a move and said 'Our withdrawal of support may result in fall of the government. But since the Prime Minister is away, we want to discuss with him and have sought an appointment with him.'
Banerjee said Congress was dependent on the support of allies like the Trinamool Congress, NCP and DMK to run the government but the allies have been ignored and not consulted on this critical issue.
Allies like NCP and National Conference also expressed their discomfort with the petrol price hike and sought a reconsideration of the decision.
'In the next Cabinet meeting there will be a debate on it,' New and Renewable Energy Minister and National Conference President Farooq Abdullah said.
He, however said that the rise domestic prices of petrol depend on the international market. “But still, they have kept diesel prices very low, because majorly diesel is used here,' he said and added 'we are not angry or upset. We think we will have to work collectively to get it under control.'
'We are very much concerned. The government should devise some mechanism to check frequent hike in petrol prices,' NCP General Secretary Tariq Anwar said.
When pointed out that the Trinamool Congress has threatened to pull out of government on the issue, Anwar was quipped 'We do not have any such plans.'
Abdullah and Anwar pointed out that the government had not touched the prices of diesel and cooking gas which is used by the masses.
Even as allies mounted pressure, the oil marketing companies ruled out a roll back of their yesterday's decision but said they would cut the rate if government gives them a directive.
However, the Congress party has indicated that a 'partial rollback' of the hike could happen in the next few days after Prime Minister Manmohan Singh's return from G-20 summit in France.
'Congress party is very concerned about the price rise and calls upon the government to take measures. We hope the government will look into the matter very seriously and not not only do everything in its power to diminish this increase but also to consider other ways and means of giving relief to the needy,' said the party spokesman Abhishek Singhvi.
But he refused to go into further details and said 'we are not here to fetter the jurisdiction and work of the government. Whichever means has the desired effect will be highly desirable. But we leave it to the discretion of the government to decide these steps.'
Responding to West Bengal Chief Minister Mamata Banerjee's concern over frequent petrol price hikes, Union Commerce and Industry Minister Anand Sharma has said he would convey this to Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
Sharma, who is now in Kolkata, met the West Bengal Chief Minister, after having a discussion with a group of industrialists.
India