Central Consumer Protection Authority bans hidden 'LPG' and fuel surcharges in restaurant bills

The Central Consumer Protection Authority (CCPA) has issued an advisory directing hotels and restaurants to stop levying additional charges such as “LPG charges”, “gas surcharge” and “fuel cost recovery” on customer bills.

The move follows complaints received through the National Consumer Helpline and media reports indicating that some establishments are adding these costs by default, over and above menu prices and applicable taxes.

Referring to its earlier guidelines issued on July 4, 2022, regarding service charges, the authority said the listed price of food and beverages already covers both goods and services. Any extra charge beyond this, it clarified, amounts to an unfair trade practice under the Consumer Protection Act, 2019.

The advisory emphasised that operational expenses such as LPG, fuel and electricity are part of a business’s internal costs and must be built into menu pricing. Charging these separately was termed non-transparent and a violation of consumer rights. Labelling such fees under different names to bypass existing rules on service charges will also be treated as a breach.

Hotels and restaurants have been instructed not to add such charges automatically to bills. The CCPA said menu prices must reflect the final payable amount, excluding only applicable taxes, and customers must not be pressured into paying non-voluntary fees.

Consumers who encounter such charges can ask for them to be removed from the bill. Complaints can be filed via the National Consumer Helpline by dialling 1915 or through its mobile application. They may also approach consumer commissions through the e-Jagriti portal or raise the issue with local district authorities or the CCPA.

The authority warned that failure to comply with the advisory could invite action under the provisions of the Consumer Protection Act, 2019.