The Central Consumer Protection Authority (CCPA), through its advisory dated March 25, 2026, has directed hotels and restaurants not to levy additional charges such as “LPG charges”, “gas surcharge”, or similar fees by default on consumer bills. The authority observed that such charges are being imposed over and above menu prices and applicable taxes, which constitutes an unfair trade practice under the Consumer Protection Act, 2019. It clarified that operational costs like fuel, LPG, and electricity are already embedded in the pricing of food and services and cannot be recovered separately from consumers. The advisory reiterates earlier guidelines prohibiting additional charges akin to service charges under different nomenclature. Businesses must ensure that menu prices reflect the final cost, excluding only applicable taxes. Consumers are also empowered to challenge such charges and seek redress through helplines and legal forums. Non-compliance may attract regulatory action under consumer protection laws.
CCPA-1/3/2026-CCPA
CENTRAL CONSUMER PROTECTION AUTHORITY
Krishi Bhawan, New Delhi-1
Dated : 25th March, 2026
Subject: Advisory to prevent unfair trade practices and protection of consumer interest with regard to levy of “LPG Charges”, “Gas Charges”, or similar charge in hotels and restaurants — reg.
The Central Consumer Protection Authority (CCPA), established under Section 10 of the Consumer Protection Act, 2019 (hereinafter referred to as “the Act”), is mandated under Section 18 to protect, promote and enforce the rights of consumers and prevent unfair trade practices.
2. It has come to the notice of the CCPA, through grievances registered on the National Consumer Helpline (NCH), complaints and media reports that restaurants and hotels are levying additional charges in the name of “LPG charges”, “gas surcharge”, “fuel cost recovery”, “gas crisis charge” or similar terminology in the bill by default. Further, such charge is being levied in addition to the total price of the food items mentioned in the menu and applicable taxes.
3. In this regard, attention is invited to the CCPA Guidelines dated 04.07.2022 on levy of service charge, which, inter alia, clarify that:
i. A component of service is inherent in price of food and beverages offered by the restaurant or hotel.
ii. Pricing of the product thus covers both the goods and services component.
iiii. Charging anything other than the said amount would amount to unfair trade practice under the Act.
4. It is reiterated that input costs, including fuel, LPG, electricity, or other operational expenses, are part of the cost of running the business, and must be appropriately factored into the pricing of menu items. Recovery of such costs through separate, mandatory charges imposed on consumers amounts to:
i. Unfair trade practice under Section 2(47) of the Act, as it involves imposition of unjustified costs and lack of transparency; and
ii. Further, levying such charges under different nomenclature is an attempt to circumvent the existing guidelines on service charge, which explicitly prohibit collection of any additional charge by default or under any other name.
iii. Such charges, irrespective of the nomenclature used, are in the nature of a service charge or any other additional fee collected over and above the price of food and beverages. Accordingly, levy of “LPG charges”, “gas surcharge”, “fuel cost recovery”, “gas crisis charge” or similar charges by default shall be treated as a violation of the CCPA Guidelines dated 04.07.2022 on service charge. Any non-compliance in this regard may attract action under the provisions of the Consumer Protection Act, 2019.
5. Therefore, to prevent unfair trade practices and protect consumer interest with regard to levying of such charge, the following is advised:
i. No hotel or restaurant shall levy “LPG charges”, “gas surcharge”, “fuel cost recovery”, “gas crisis charge” or any similar charge by default or automatically in the bill.
ii. Hotels and restaurants shall ensure that the price displayed in the menu is the final price, exclusive only of applicable taxes.
iii. Consumers shall not be misled or compelled to pay any additional charge that is not explicitly part of the menu price and is not voluntary in nature.
6. If any consumer finds that a hotel or restaurant is levying such charge in violation to the above-mentioned advisory, a consumer may:-
i. Make a request to the concerned hotel or restaurant to remove such charge from the bill amount.
ii. Lodge a complaint on the National Consumer Helpline (NCH), which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through the NCH mobile app.
iii. File a complaint against unfair trade practice with the Consumer Commission. The Complaint can also be filed electronically through e-Jagriti portal (e-jagriti.com) for its speedy and effective redressal.
iv. Submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA. The complaint may also be sent to the CCPA by e-mail at com-ccpa@gov.in
(Nidhi Khare)
Chief Commissioner
To:
1. All States/UTs (through Chief Secretaries)
2. District Collectors
3. Ministry of Tourism
4. Federation of Hotel & Restaurant Associations of India (FHRAI)
5. National Restaurant Association of India (NRAI)
