The Central Consumer Protection Authority (CCPA) has issued a strong advisory to hotels and restaurants across India, directing them to refrain from adding additional charges, such as LPG charges or fuel reimbursement, to customers’ bills. The regulator categorized such levies as unfair business practices and warned of strict action under the law for non-compliance.
The CCPA designates “LPG charges” as unfair business practices
In a major step to protect consumer rights, the CCPA said it took seriously the fact that businesses add additional costs beyond menu prices and applicable taxes.
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According to an official statement, the authority “has taken serious notice of hotels and restaurants levying additional charges such as ‘LPG charges’, ‘gas surcharge’ and ‘fuel cost reimbursement’ in consumer bills, terming the practice as an unfair business practice under the Consumer Protection Act, 2019”.
This recommendation makes it clear that these charges cannot be added automatically and that businesses must include all operating costs in their quoted prices.
Only menu price and tax allowed
The regulator emphasized that consumers should only be required to pay the price shown in the offer along with applicable taxes. Any additional charges imposed by default would violate existing norms.
“The CCPA, based on complaints received at the National Consumer Helpline (NCH) and media reports, has found that some hotels and restaurants routinely charge such charges to the consumer’s bill, over and above the price of food and beverages listed on the menu and applicable taxes,” it said in a statement.
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The authority further clarified that expenses such as fuel, LPG and electricity are an integral part of business and must not be passed on separately to customers.
Notice issued under the Consumer Protection Act
The guidance was issued under Section 10 of the Consumer Protection Act 2019, which empowers the CCPA to regulate unfair business practices. The watchdog warned that attempts to circumvent earlier service charge guidelines by introducing alternative charges would not be tolerated.
The CCPA advised that “no hotel or restaurant shall charge ‘LPG charges’, ‘gas charges’ or similar charges by default or automatically in the bill”.
He added that “consumers must not be misled or forced to pay any additional charges that are not voluntary in nature”.
Nationwide monitoring and enforcement
The authority said it actively monitors compliance across the country and will initiate action if violations are found.
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“The CCPA is closely monitoring such practices across the country. Any violation, including the imposition of unfair or unauthorized charges by hotels and restaurants, will be dealt with appropriately and the CCPA will take necessary action as per the provisions of the law to protect the interests of consumers,” the statement said.
Such practices, the regulator noted, lead to an unjustified financial burden on consumers and undermine price transparency.
How consumers can file complaints
The CCPA also outlined mechanisms for redress of complaints. Consumers experiencing such charges may first request that the charge be removed from their account.
If not resolved, complaints can be made through the National Consumer Helpline at 1915 or through its mobile application. Alternatively, complaints can be filed through the e-Jagriti portal or submitted to the District Collector or CCPA directly.
LPG supply pressures amid global tensions
The recommendation comes against the backdrop of tensions in LPG supply chains due to geopolitical developments. The government noted that LPG availability “continues to be affected due to the prevailing geopolitical situation”, although it added that no supply disruptions or dry-ups have been reported and supplies remain stable.
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In a related development, Indian Oil Corporation has reportedly resumed LPG purchases from Iran for the first time since 2018 as India seeks to ease supply pressures. The shipment, shared with the state’s other refineries, is estimated to be about 43,000 tons of butane and propane — enough to meet roughly half a day’s national demand.
With India importing nearly two-thirds of its LPG requirements and much of it coming from the Middle East, disruptions to key transit routes such as the Strait of Hormuz have raised concerns about supply stability.
Strive for price transparency
The CCPA’s latest directive reinforces its wider push for transparent pricing in the hospitality sector. By reiterating that all input costs must be included in menu prices, the Authority aims to eliminate hidden fees and ensure that consumers are not subjected to arbitrary charging practices.
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As enforcement tightens, restaurants and hotels may need to reassess their pricing structures to remain compliant with consumer protection standards.
