India’s CCPA Warns Restaurants Against Adding ‘Gas Surcharges’ to Bills Amid LPG Crisis

CCPA has ordered hotels and restaurants to stop levying "fuel surcharges" on food bills, as businesses attempt to pass on the rising costs of a nationwide energy crisis to diners.

The Central Consumer Protection Authority issued a formal advisory on Thursday, banning the addition of LPG charges, gas surcharges, or fuel cost recovery fees by default. The regulator warned that such practices constitute "unfair trade practices" and may attract punitive action under the Consumer Protection Act.

The move follows a spike in complaints to the National Consumer Helpline. Diners across major metros reported that restaurants were adding surcharges, sometimes ranging from 2% to 5%, over and above the menu prices and statutory taxes to offset the high cost of commercial gas cylinders.

Energy Crunch

The crackdown comes as India faces its most severe LPG supply disruption in recent history. A kinetic equilibrium in the Middle East following the U.S.-Israeli conflict with Iran has choked the Strait of Hormuz, through which a significant portion of India's fuel imports flow.

While the government has moved to protect domestic household supplies, commercial LPG prices have remained volatile, leading the hospitality sector to seek desperate measures to maintain margins.

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