The Central Consumer Protection Authority (CCPA) has issued an advisory prohibiting hotels and restaurants from levying additional charges such as “LPG charges”, “gas surcharge”, or “fuel cost recovery” by default, terming such practices as unfair and misleading to consumers.

The Advisory, dated March 25, 2026, notes that such charges are being imposed over and above menu prices and applicable taxes, often without transparency. The CCPA clarified that input costs like fuel, LPG, and electricity are part of the operational expenses of a business and must be factored into the menu price itself, rather than being recovered through separate charges.

It further emphasised that imposing such additional charges amounts to an “unfair trade practice” under the Consumer Protection Act, 2019, as it leads to unjustified cost imposition and lack of transparency. The authority also noted that such practices attempt to circumvent existing guidelines on service charges, which prohibit mandatory levies under any other nomenclature.

Accordingly, the CCPA directed that no hotel or restaurant shall levy such charges automatically in bills and must ensure that menu prices reflect the final cost, excluding only applicable taxes. It also clarified that consumers cannot be compelled or misled into paying any charge that is not explicitly part of the menu price or voluntary in nature.

The advisory provides that consumers may seek removal of such charges, lodge complaints through the National Consumer Helpline, or approach consumer commissions in case of violations. Non-compliance may invite action under the Consumer Protection Act.