NEW DELHI: Major reforms in the oil and gas sector, including diesel deregulation and a new gas pricing policy, will have a positive impact on fuel retailing and gas production companies, a Fitch Ratings report said. However, the outlook for Indian oil and gas companies’ ratings in 2015 remains stable. “The benefits of oil price reforms and lower global oil prices for refining and marketing companies will be offset by significant capex requirements in the medium term, which will lead to negative free cash flow. Wheelock Ratings said, “Low international oil prices will hurt the cash production capacity of upstream companies supplying large volumes of oil, and state-owned manufacturers are still expected to have to deal with significant oil price discounts.” 10 The easing of diesel prices in March will help close the recovery gap (nothing more than international oil prices minus retail subsidies). Currently, the subsidy applies only to domestic liquefied natural g...