Government on Tuesday took state-run oil firms to task for reported shortages in fuel supplies in some parts of the country and asked them to clear the waitlist for new domestic cooking gas (LPG) connections in 60 days.

Petroleum Minister Murli Deora reviewed the supply and distribution of essential petroleum products in the country at a meeting with heads of oil companies and issued instructions for ensuring adequate supplies in the coming festive season.

"LPG connections will be available on demand," Petroleum Secretary R S Pandey told reporters after the meeting.

Pandey did some hard-talking with the CEOs of oil firms who had gone slow on issuing new LPG connections and restricted auto fuel supplies in view of mounting losses, and asked Indian Oil, Bharat Petroleum and Hindustan Petroleum to liquidate the waitlist for new domestic gas connections in two months.

"Wait time for LPG connections will not be allowed to exceed two months," he said while also announcing opening up of a Grievance Cell in the his ministry to address complaints.

IOC Chairman Sarthak Behuria said the oil industry had taken some measures including supplying only costlier branded fuel at select petrol pumps and stopping new LPG connectionsto tide over huge revenue losses resulting from Government's decision not to raise petrol, diesel, LPG and kerosene prices in line with cost.

"We have 6-7 lakh waitlist for new LPG connections and we have now placed orders to buy 10 lakh new LPG cylinders to liquidate it," he said adding the consumers will get a choice to buy both normal and branded petrol and diesel at all retail outlets in the country.