No extra LPG or fuel charges on restaurant bills, says CCPA; only menu price and taxes allowed

THE Central Consumer Protection Authority (CCPA) has issued a stern advisory to hotels and restaurants across India, directing them to refrain from imposing additional charges such as LPG fees or fuel cost recovery on customer bills.

The regulator has categorised such levies as unfair trade practices, warning of strict action under the law for non-compliance.

CCPA flags ‘LPG charges’ as unfair trade practice

In a significant move aimed at protecting consumer rights, the CCPA said it has taken serious note of establishments adding extra costs beyond menu prices and applicable taxes.

According to an official statement, the authority has "taken serious note of hotels and restaurants levying additional charges, such as 'LPG charges', 'gas surcharge' and 'fuel cost recovery' in consumer bills, terming the practice an unfair trade practice under the Consumer Protection Act, 2019".

The advisory makes it clear that such charges cannot be added automatically and that businesses must incorporate all operational costs into their listed prices.

Only menu price and taxes allowed

The regulator emphasised that consumers should only be required to pay the price displayed on the menu, along with applicable taxes. Any additional charges imposed by default would violate existing norms.

"The CCPA has observed, based on grievances received on the National Consumer Helpline (NCH), and media reports, that certain hotels and restaurants are levying such charges in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes," the statement said.

The authority further clarified that expenses such as fuel, LPG and electricity are intrinsic to running a business and must not be passed on separately to customers.

Advisory issued under Consumer Protection Act

The directive has been issued under Section 10 of the Consumer Protection Act, 2019, empowering the CCPA to regulate unfair trade practices. The watchdog warned that attempts to circumvent earlier service charge guidelines by introducing alternative levies would not be tolerated.

The CCPA has advised that "No hotel or restaurant shall levy 'LPG charges', 'gas charges', or similar charges by default or automatically in the bill".

It added that "Consumers shall not be misled or compelled to pay any additional charge that is not voluntary in nature".

Nationwide monitoring and enforcement

The authority said it is actively monitoring compliance across the country and will initiate action where violations are found.

"The CCPA is closely monitoring such practices across the country. Any violation, including the imposition of unfair or unauthorised charges by hotels and restaurants, will be dealt with appropriately, and necessary action shall be taken by the CCPA under the provisions of the Act to safeguard the interests of consumers," the statement said.

Such practices, the regulator noted, result in unjustified financial burden on consumers and undermine transparency in pricing.

How consumers can file complaints

The CCPA has also outlined mechanisms for grievance redressal. Consumers encountering such charges can first request removal of the fee from their bill.

If unresolved, complaints may be lodged via the National Consumer Helpline by dialling 1915 or through its mobile application. Alternatively, grievances can be filed through the e-Jagriti portal, or submitted to the District Collector or directly to the CCPA.

LPG supply pressures amid global tensions

The advisory comes against the backdrop of strain in LPG supply chains due to geopolitical developments. The government noted that LPG availability "continues to be affected due to the prevailing geopolitical situation", though it added that no supply disruptions or dry-outs have been reported and deliveries remain steady.

In a related development, Indian Oil Corporation has reportedly resumed purchases of LPG from Iran for the first time since 2018, as India seeks to mitigate supply pressures. The shipment, shared with other state-run refiners, is estimated at around 43,000 tonnes of butane and propane—sufficient to meet roughly half a day’s national demand.

With India importing nearly two-thirds of its LPG requirements, and the bulk sourced from the Middle East, disruptions in key transit routes such as the Strait of Hormuz have heightened concerns over supply stability.

Push for pricing transparency

The CCPA’s latest directive reinforces its broader push for transparent pricing in the hospitality sector. By reiterating that all input costs must be embedded in menu prices, the authority aims to eliminate hidden charges and ensure consumers are not subjected to arbitrary billing practices.

As enforcement tightens, restaurants and hotels may need to reassess their pricing structures to remain compliant with consumer protection norms.