Hotels, Restaurants Warned Against ‘Gas’ and ‘Fuel’ Surcharges in Bills

NEW DELHI — India’s consumer watchdog has flagged the growing practice of hotels and restaurants adding charges such as “LPG fees,” “gas surcharges,” and “fuel cost recovery” to customer bills, calling it an unfair trade practice.

The Central Consumer Protection Authority (CCPA), in an advisory issued Wednesday, said such charges are often applied automatically and are being used to bypass existing norms related to service charges.

The authority directed that no such fees should be levied by default and warned that violations could attract action under the Consumer Protection Act, 2019, according to the Ministry of Consumer Affairs, Food and Public Distribution.

The move comes after complaints received through the National Consumer Helpline and media reports indicated that some establishments were adding these charges on top of menu prices and applicable taxes.

Regulators said the practice lacks transparency and places unjustified costs on consumers. They clarified that operational expenses such as fuel, LPG, and electricity are part of running a business and should already be reflected in menu pricing.

“Recovery of such costs through separate mandatory charges constitutes an unfair trade practice,” the authority said.

The CCPA emphasized that menu prices should be treated as final, excluding only applicable taxes, and that consumers should not be misled or compelled to pay additional charges that are not voluntary.

It also reiterated that such fees, regardless of how they are labeled, are similar to service charges and their automatic inclusion would violate guidelines issued on July 4, 2022.

The authority said it is monitoring the issue nationwide and will take action where necessary to protect consumer interests.

Consumers who encounter such charges can request that they be removed from their bill or file a complaint through the National Consumer Helpline by calling 1915 or using its mobile app. They can also approach consumer commissions through the e-Jagriti portal or file complaints with district authorities or the CCPA. (Source: IANS)