Date: 2026-03-25Category: Press ReleaseState: Union GovernmentCountry: India
Central Consumer Protection Authority (CCPA) issues advisory to prevent unfair trade practices relating to levy of “LPG Charges” and similar charges in hotels and restaurants
**Executive Summary**
The Central Consumer Protection Authority (CCPA) issued an advisory on March 25, 2026, prohibiting hotels and restaurants from automatically levying "LPG charges" or similar fuel-related surcharges. Termed as an unfair trade practice under the Consumer Protection Act, 2019, the directive mandates that operational costs must be factored into menu pricing rather than added as separate, mandatory bill items. The CCPA has warned that violations will invite strict action and has provided specific grievance redressal mechanisms for consumers.
**Key Points / Main Content**
**Prohibition of Fuel-Related Charges**
* Hotels and restaurants are barred from adding "LPG charges," "gas surcharges," or "fuel cost recovery" to bills by default or automatically.
* Such charges are identified as an attempt to circumvent 2022 guidelines regarding service charges by using different nomenclature.
* The CCPA clarifies that any such mandatory charges, regardless of the name used, violate existing consumer protection guidelines.
**Pricing and Transparency Requirements**
* All operational expenses, including fuel, LPG, and electricity, must be factored into the displayed pricing of menu items.
* The price listed on the menu must be the final price, inclusive of everything except applicable taxes.
* Establishments are prohibited from misleading or compelling consumers to pay any additional charges that are not voluntary in nature.
**Legal Enforcement and Monitoring**
* Levying separate mandatory charges for operational costs constitutes an "unfair trade practice" under Section 2(47) of the Consumer Protection Act, 2019.
* The CCPA is actively monitoring these practices across the country to safeguard consumer interests.
* Violations of the advisory or the 04.07.2022 guidelines may attract strict legal action under the provisions of the Act.
**Impact Analysis**
**Hotels and Restaurants**
**Impact**
These establishments are now legally restricted from adding automated fuel-related surcharges to consumer bills and are required to maintain transparent pricing.
**Action Required**
Must cease the practice of levying default "LPG charges" and ensure all operational costs are integrated into menu prices. Establishments must ensure that any additional charges are strictly voluntary.
**Consumers**
**Impact**
Consumers are protected from unjustified, non-transparent costs and are empowered to pay only the menu price plus taxes.
**Action Required**
If faced with unauthorized charges, consumers should request the establishment to remove them, call the National Consumer Helpline (1915), file a complaint via the e-Jagriti portal, or report the matter to the District Collector or the CCPA.
**Central Consumer Protection Authority (CCPA)**
**Impact**
The Authority acts as the regulatory body responsible for enforcing transparency and preventing unfair trade practices in the hospitality sector.
**Action Required**
Monitor compliance nationwide and take necessary legal action against hotels and restaurants that continue to impose unauthorized charges.
Key Entities Referenced
Central Consumer Protection Authority (CCPA): The regulatory body that issued the advisory prohibiting hotels and restaurants from levying automatic fuel-related charges and surcharges.
Consumer Protection Act, 2019: The primary legislation that classifies the recovery of operational costs through separate mandatory charges as an unfair trade practice.
National Consumer Helpline (NCH): The official grievance platform (reachable via 1915 or app) for consumers to report unauthorized billing practices.
e-Jagriti portal: The digital initiative for filing consumer complaints before the appropriate Consumer Commission.
Ministry of Consumer Affairs, Food & Public Distribution
Central Consumer Protection Authority (CCPA)
issues advisory to prevent unfair trade practices
relating to levy of “LPG Charges” and similar
charges in hotels and restaurants
Hotels and restaurants barred from adding default fuel-
related charges; practice termed unfair trade under
Consumer Protection Act, 2019
Posted On: 25 MAR 2026 4:01PM by PIB Delhi
The Central Consumer Protection Authority (CCPA) 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. Observing
that such charges are being imposed by default to circumvent existing guidelines on service charges, the
Authority has issued a fresh advisory under section 10 of the Consumer Protection Act 2019
directing that no such charges shall be levied automatically, and warned that violations may invite
strict action.
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. Such practices
result in lack of transparency and impose unjustified costs on consumers.
The present practice of levying “LPG charges” or similar charges is an attempt to circumvent the
aforesaid guidelines by adopting a different nomenclature. The CCPA has clarified that input costs such as
fuel, LPG, electricity, and other operational expenses are part of the cost of running a business and must
be factored into the pricing of menu items. Recovery of such costs through separate mandatory
charges constitutes an unfair trade practice under Section 2(47) of the Act.
Through this advisory, the CCPA has advised that:
i. No hotel or restaurant shall levy “LPG charges”, “gas charges”, or similar charges by default
or automatically in the bill.
ii. The price displayed in the menu shall be the final price, exclusive only of applicable taxes.
iii. Consumers shall not be misled or compelled to pay any additional charge that is not voluntary
in nature.
The advisory further reiterates that any such charges, irrespective of nomenclature, are in the nature of
service charge or additional fees and their levy by default would amount to violation of the CCPA
Guidelines dated 04.07.2022, and may attract action under the Consumer Protection Act, 2019.Consumer grievance redressal
Consumers who encounter such practices may:
i. Request the hotel or restaurant to remove the charge from the bill
ii. Lodge a complaint on the National Consumer Helpline by calling 1915 or through the N
CH mobile app
iii. File a complaint before the appropriate Consumer Commission through the e-Jagriti
portal
iv. Submit a complaint to the District Collector or directly to the CCPA.
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 necessary
action shall be taken by the CCPA under the provisions of the Act to safeguard the interests of consumers.
(The advisory is available on the Central Consumer Protection Authority’s website https://doca.gov.in/ccp
a/guidelins.php)
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