New Delhi: Petrol and diesel prices will not be increased following government's decision to hike excise duty by Rs 1.60 per litre and 40 paise a litre respectively as state-owned oil companies have decided to absorb the raise for the time being.

The government late on Friday night raised excise duty on petrol and diesel to mop up additional revenue to meet budgetary targets. "There will be no change in retail prices of petrol and diesel for now," a top oil company official said. "We are not passing on the excise duty hike as of now."