State-owned oil marketing companies (OMCs) have withheld processing of fresh LPG refill bookings for eligible consumers during this year's supply disruption. According to reports from The Economic Times, Minister of State for Petroleum and Natural Gas Suresh Gopi defended this decision in a written reply to Rajya Sabha, stating the move was aimed at clearing long-pending orders and ensuring fairer and faster delivery of cooking gas cylinders. The government has implemented minimum inter-refill gaps of 25 days in urban areas and 45 days in rural areas, with PSU OMCs requiring distributors to first clear long-pending bookings by following the First In First Out (FIFO) principle before processing newer orders.
The temporary system controls were introduced after the outbreak of conflict in West Asia in February 2026 severely disrupted India's LPG imports. As reported by The Economic Times, before the conflict, India imported about 60% of its LPG requirement, with nearly 90% of those imports transiting through the Strait of Hormuz. The closure of the strait severely constrained supplies, prompting the government to take a series of measures to stabilise domestic LPG availability. According to recent industry reports, the ongoing West Asian crisis is creating significant uncertainty regarding gas availability and procurement costs, with investors expecting short-term margin volatility until geopolitical tensions stabilise and supply chains normalise.
The government introduced a minimum inter-refill gap of 25 days in urban areas and 45 days in rural areas and rationalised stock management at LPG bottling plants. According to the minister's statement, PSU OMCs also implemented system controls requiring distributors to first clear long-pending bookings by following the First In First Out (FIFO) principle before processing newer orders. This prevented customers facing prolonged delay and ensured timely and equitable delivery of LPG refill to maximum genuine consumers.
The government maintained that the measures helped improve delivery performance significantly. As reported by The Economic Times, the average LPG refill delivery time across the country fell from 4.33 days on June 1, 2025, to 2.15 days on July 27, 2026. The ministry also tabled state-wise data on refill bookings, deliveries and backlogs for the last six months to provide transparency on the situation. However, recent industry reports indicate that management is warning of continued pressure on profitability due to high spot gas prices, with margins expected to remain under pressure for at least 1-2 months until the West Asian crisis is resolved.
