New Delhi, June 7 -- The cost of supplying a 14.2 kg domestic LPG cylinder has risen to over Rs 1,600, leaving an under-recovery of about Rs 700 on each cylinder, which is absorbed by the government and public sector marketing companies. The jump follows a sharp rise in the international benchmark, with Saudi Aramco's Contract Price for LPG up about 46% since February due to the Strait of Hormuz disruption.

According to the Ministry of Petroleum and Natural Gas, the blended Saudi CP for a 50:50 propane-butane mix stood at USD 542.50 per tonne in February, before the disruption. After Hormuz tightened Mideast Gulf exports, the April contract rose to USD 775 per tonne and has edged up further to USD 790 per tonne in June.

Propane CP climb...