The government may soon hike rate of LPG (cooking gas) as the fuel pricing division of the petroleum ministry has recommended an increase in the commission paid to dealers by more than 9 per cent.

The Petroleum Planning & Analysis Cell (PPAC) recently recommended that the government should increase LPG dealers' commission by Rs 3.46 per 14.2-kg cylinder to Rs 40.71.

PPAC also recommended increasing dealers' commission on recently announced 5-kg cooking gas cylinder by Rs 1.73 to Rs 20.36 per cylinder.

Five-kg LPG cylinders, which have been introduced in select cities keeping needs of migratory consumers in mind, currently cost Rs 353 in Delhi. It may be noted here that no subsidy is being offered on 5-kg LPG cylinders.

Any increase in commission is typically passed on to consumers, and the government is expected to announce its decision on whether it would accept the recommendation or not within a week or two.

The last hike in LPG rates was announced in October 2012 following an increase in the dealers' commission by the government. At that time, the price of cooking gas was hiked from Rs 399 to Rs 410.50 per cylinder.