Restaurants, Hotels Can't Charge Extra For Food Citing 'LPG' Charge - Central Consumer Protection Authority


Mohul Ghosh

Mohul Ghosh

Mar 26, 2026


In a strong move to protect consumer rights, the Central Consumer Protection Authority (CCPA) has warned restaurants against levying separate LPG or gas charges on customer bills. The advisory comes amid rising instances of eateries adding “LPG surcharge” or similar fees due to cooking gas shortages.

Restaurants, Hotels Can't Charge Extra For Food Citing 'LPG' Charge - Central Consumer Protection Authority

What Is the Issue?

Recently, several restaurants across India started adding extra charges labeled as “LPG surcharge” or “gas supply fee” to customer bills.

These charges were introduced as commercial LPG prices surged due to supply disruptions linked to global geopolitical tensions. Restaurants argued that rising fuel costs forced them to pass on the burden to customers.


CCPA’s Clear Warning

The CCPA has clarified that:

  • Restaurants cannot levy additional charges like LPG fees separately
  • Customers should only pay the menu price + applicable taxes
  • Adding such extra charges may be treated as an unfair trade practice

This aligns with broader consumer protection rules that prohibit hidden or forced charges beyond the declared price.


Why LPG Charges Are Problematic

According to consumer protection principles:

  • Pricing must be transparent and upfront
  • Any additional cost should be included in menu pricing, not added later
  • Surprise charges reduce trust and violate fair billing practices

Experts say if restaurants are facing higher costs, they should revise menu prices instead of adding separate line-item fees.


Similar Rules Already Exist (Service Charge Example)

This move is consistent with earlier action by authorities against mandatory service charges.

  • Restaurants cannot add service charge automatically
  • It cannot be collected under another name
  • Customers have the right to refuse it

The same logic now extends to LPG-related charges—no hidden or forced add-ons allowed.


What Customers Can Do

If you notice an LPG or similar surcharge on your bill:

  • Ask the restaurant to remove the charge
  • File a complaint via the National Consumer Helpline (1915)
  • Report the issue as an unfair trade practice

Authorities have previously imposed penalties and ordered refunds in similar cases.


Bigger Picture: Transparency Over Hidden Costs

This warning comes at a time when rising fuel and supply chain costs are impacting businesses. However, regulators are making it clear that consumer transparency cannot be compromised.

Restaurants may adjust pricing—but not through hidden or forced charges.

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Mohul Ghosh
Mohul Ghosh
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