CCPA warns eateries against LPG, fuel surcharges

The Central Consumer Protection Authority (CCPA) has cautioned hotels and restaurants against levying additional charges such as LPG fees, gas surcharges or fuel cost recovery in customer bills, calling them unfair trade practices under the Consumer Protection Act, 2019.

In an advisory issued on Wednesday, the authority said eateries must not impose such charges automatically or by default. It stressed that only applicable taxes can be added over and above the prices listed on the menu.

The CCPA said it has taken serious note of complaints received through the National Consumer Helpline and media reports indicating that some establishments are adding these charges to bills, effectively increasing the final cost paid by consumers.

According to the regulator, such practices lack transparency and place an unjustified financial burden on customers. It observed that these additional charges are often introduced to bypass existing guidelines related to service charges.

Clarifying the rules, the authority said operational costs such as LPG, fuel, electricity and other input expenses are part of running a business and must be factored into the pricing of food and beverages. Recovering these costs through separate, mandatory charges is not permissible.

The advisory clearly states that no hotel or restaurant should include LPG charges, gas fees or similar costs in the bill unless they are voluntary. Any such charges, regardless of their name, will be treated as service charges or additional fees.

The CCPA warned that violations of its guidelines, including those issued in July 2022 on service charges, could invite strict action under the law. It also reiterated that consumers should not be misled or forced to pay any non-voluntary charges beyond the menu price and applicable taxes.