NEW DELHI: State-run fuel retailers could raise petrol price by around a rupee per litre on the New Year day, provided they succeed in securing a cue from the government that is staring at assembly polls in five states, beginning January-end.

“International price of gasoline are more or less at the same level (as at the time of last revision). But the rupee has depreciated to about Rs 52.70 to a dollar,” a top executive of one oil marketing company said.

Pump prices, which were last revised on November 30, are pegged at an exchange rate of Rs 51.50 to a dollar. The average exchange rate in the first fortnight of December was Rs 51.98 to a US dollar, which has further deteriorated.

State-owned oil companies like Indian Oil Corp (IOC) use fortnightly average of benchmark oil price and exchange rate to revise retail rates on the 1st and 16th of every month. The next review is due on December 31.

“There is an under-recovery of about 85 paise (Rs 0.85) per litre. After adding local sales tax, the desired increase in retail prices would be Rs 1.02 per litre,” the executive said.

The companies did not get clearance from the oil ministry to raise pump prices after the last review on December 15/16. The ministry advised them to wait and watch the effects of the RBI’s intervention to arrest the rupee’s slide. At that time, an increase of 65-70 paise per litre was required to align retail price to international rates.

Petrol at IOC pumps in Delhi is priced at Rs 65.64 per litre and the rates vary by a few paise at the pumps of Bharat Petroleum and Hindustan Petroleum. In November, the firms had cut petrol prices twice on drop in international rates. The companies reduced petrol prices by Rs 2.22 / litre, or 3.2%, from November 16, followed by 78 paise/ litre reduction from December 1.