New Delhi, March 1 (PTI): Petrol and diesel prices will go up by 50 paise per litre from April 1 due to the increase in the cess for road development, but oil companies will have to bear the burden of the increase in excise duty.

The cess on petrol and diesel, for highway and road development, would be hiked to Rs 2 per litre from the current Rs 1.50 a litre, an increase oil companies will pass on to consumers.

?Finance minister P. Chidambaram had announced that the additional cess would go directly for highway development and so unless it is collected from consumers, it cannot be put to use,? a top petroleum ministry official said.

But the oil firms will have to bear the burden of the increase in excise duty on petrol and diesel. Non-revision in prices would mean a Rs 550-600 crore dent every month on their profitability.

Petroleum minister Mani Shankar Aiyar, however, said he would approach the cabinet for ?appropriate directions? on budget proposals. ?We are weighing the implications of the budget for the entire range of proposals for the oil sector and will move cabinet soon for instructions. This will take a few weeks time... Till then there will be no change in prices,? he said.