Consumer protection body says fuel surcharge by hotels unfair trade practice
This story was originally published at 16:47 IST on 25 March 2026
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NEW DELHI – Hotels and restaurants levying additional charges such as "LPG charges", "gas surcharge", and "fuel cost recovery" on customers is an unfair trade practice under The Consumer Protection Act, 2019, the Central Consumer Protection Authority has said.
Issuing a fresh advisory under Section 10 of the Act, the authority said such charges must not be imposed automatically, and warned of strict action. The move follows complaints received on the National Consumer Helpline and media reports highlighting the practice.
In a release, the authority said these charges are often levied by default over and above menu prices and applicable taxes, leading to lack of transparency and unjustified costs for consumers. It said such practices are being used to bypass existing guidelines on service charges.
The authority said input costs such as fuel, LPG, and electricity are part of business expenses and must be built into menu prices. "Recovering them through separate mandatory charges amounts to an unfair trade practice under Section 2(47) of the Act," it said.
In the advisory, hotels and restaurants have been directed not to levy such charges automatically. The price displayed on the menu should be final, excluding only applicable taxes, and consumers must not be misled or compelled to pay non-voluntary charges.
The authority said such levies, irrespective of nomenclature, are akin to service charges and violate its July 4, 2022, guidelines if imposed by default. It said it is monitoring such practices and will take necessary action to safeguard consumer interests. End
Reported by Pallavi Singhal
Edited by Rajeev Pai
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