* Will review situation in couple of days * Falling global prices had raised hopes of price cut * Refiners worried over falling rupee, lower margins NEW DELHI, June 18 (Reuters) - India's state-run fuel retailers have decided not to cut retail gasoline prices for now and will review the situation later this week, an oil ministry source said on Monday. Softening global oil and gasoline prices raised expectations of a second straight cut this month after companies lifted prices a record 11 percent in May - the first revision in about six months. The increase triggered public outcry and political backlash, even though petrol only accounts for about 10 percent of total fuel consumption in India. India liberalised petrol prices in June 2010 but the government continues to influence refiners, which in April threatened a hefty increase if New Delhi did not compensate them for losses incurred on sales. India's three state-run fuel retailers - IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp - tend to move their prices in tandem. "The rupee has depreciated and refining margins are also low. We will have to watch this situation on both counts ... We will review prices in a couple of days," the source said. Softening Singapore gasoline prices and global oil prices have partially offset the impact of a declining rupee which increases input costs for refiners. The Indian rupee dropped to its lowest in nearly a week on Monday after the central bank kept unchanged the key interest rate and the cash reserve ratio.

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