Government Bans LPG Charges in Hotels and Restaurants Amid Gas Crisis

by

Ganpat Singh Chouhan

Government Bans LPG Charges in Hotels and Restaurants Amid Gas Crisis

New Delhi, March 25: In response to the global gas crisis, the central government has issued a strict advisory prohibiting hotels and restaurants from charging customers “LPG fees.” This practice has been deemed an unfair trade practice and is now halted with immediate effect.

The Ministry of Consumer Affairs, Food and Public Distribution stated that the Central Consumer Protection Authority (CCPA) has taken serious note of hotels and restaurants imposing additional charges such as “LPG fees,” “gas surcharges,” and “fuel cost recovery” on consumer bills. Such practices are classified as unfair trade behavior under the Consumer Protection Act of 2019.

The advisory highlighted that these charges are often applied by default to circumvent existing guidelines on service charges. The CCPA has mandated that no such fees should be automatically collected, warning that strict action will be taken against violators.

Based on complaints received on the National Consumer Helpline (NCH) and media reports, the CCPA found that some hotels and restaurants were adding these charges to consumer bills on top of the displayed prices for food and beverages, along with applicable taxes. This practice undermines transparency and imposes undue costs on consumers.

The CCPA emphasized that input costs such as fuel, LPG, electricity, and other operational expenses are part of the overall business costs and should be included in the menu item prices. Recovering these costs through separate mandatory charges is considered an unfair trade practice under Section 2(47) of the Act.

Furthermore, the advisory stated that no hotel or restaurant shall automatically impose “LPG fees,” “gas charges,” or similar fees on bills. The displayed menu prices will be the final prices, with only applicable taxes added separately.

Leave a Comment

BREAKING NEWS: