The party said that the decision to cut petrol price by Rs.2 was "a poorly concealed ploy to deflect the widespread criticism of the failure of the government to check inflation".
"Unless the government reverses its anti-people measure of deregulation of prices of petrol, made even more necessary because of the volatility of the international market, there can be no relief from the cascading impact of rising prices of petroleum products.
"Instead of taking such a step, the prime minister is on record with the threat of extension of deregulation to the prices of other petroleum products such as diesel and cooking gas," it said in a statement.
The CPI-M pointed out that since July 2011, petrol prices had gone up by Rs.5 and so it was still Rs.3 rupees higher than it was mid-year.
"Since the deregulated regime was imposed in June last year, the prices of petrol have gone up several times... The CPI-M demands reversal of deregulation."