Expanded refining and marketing margins at ONGC's subsidiary Hindustan Petroleum Corp Ltd (HPCL) will support the profitability of the group's downstream operations. This assumes prices at the pump remain largely unchanged amid cheaper feedstock prices. "We expect the higher marketing margins to more than cover continued losses on liquefied petroleum gas (LPG) sales. Moreover, losses on LPG sales will narrow in fiscal 2026 after the government hiked prices on LPG by Rs 50 (about 10 per cent) per cylinder in April," the rating agency said. Rising prices on ONGC's gas sales will temper the impact of lower oil prices in fiscal 2026, it added. "We expect domestic gas prices to increase after India's government raised its cap on gas prices by USD 0.25 per metric million British thermal units (mmbtu) from April 2025. Moreover, gas from new wells will be sold at a higher price."