Fitch: Negative view for some Indian oil

Fitch Ratings said in a new report that the exploration and production sector of India's oil and gas industry has a stable outlook, but the outlook on the refining and marketing sector is negative for public sector companies and stable for private sector entities.

The discretionary nature of oil product pricing and subsidy sharing, along with the lack of a well-defined mechanism for timely support, are key reasons for the continued negative outlook on the public sector companies' downstream sector, Fitch said.

The government has set up an expert committee in 2010 to advise on domestic fuel pricing issues, which has yet to submit its report, the agency said. Although a positive step, this is not likely to yield any meaningful results unless the major recommendations are implemented, Fitch added.

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