Restaurants Cannot Charge Extra ‘Gas’ Fees on Your Bill, Says Consumer Authority
gas
CCPA rules that restaurants and hotels across India cannot charge extra ‘gas’ or LPG fees on customer bills; only menu prices and taxes are allowed.
Pune | 28 March, 2026: India’s consumer watchdog has issued a clear directive to the hospitality industry that restaurants and hotels cannot charge extra fees on customer bills under the pretext of gas or fuel shortages, a move aimed at protecting diners from arbitrary and unfair billing practices. The Central Consumer Protection Authority (CCPA) — the highest body regulating unfair trade practices in the country — has made it explicit that any additional charges such as “gas surcharge”, “LPG fee” or “fuel cost recovery” must not be levied separately on bills, and doing so is considered an unfair trade practice under the Consumer Protection Act, 2019.
The clarification follows a wave of consumer complaints from cities including Pune, where several restaurants were reported to have added “gas surcharge” or “LPG fees” on bills during a recent period of commercial LPG cylinder shortages. Some diners shared photographs and bills on social media showing charges labelled as “gas surcharge” — triggering public outcry as many consumers questioned the legality of such levies and whether they were genuinely linked to higher fuel costs.
According to the CCPA’s advisory, only the prices displayed on a restaurant’s menu and applicable taxes can be charged to customers. Any extra cost — even if restaurants intend to pass on operational expenses such as rising LPG or commercial gas costs — should be embedded in the menu prices themselves rather than listed as separate charges. This ensures transparency and protects consumers from unexpected or unjustified expenses.
CCPA Chief Commissioner Nidhi Khare explicitly warned restaurant operators that adding such “gas charges” independently — and printing them on bills or menu cards — will be treated as an unfair trade practice, which can invite legal action and penalties. The guidelines apply to all food establishments, including restaurants, bars, hotels and eateries nationwide.
The backdrop to this directive includes reported strains in the commercial LPG supply chain, linked in part to global trade disruptions and supply concerns. Several hospitality businesses across Pune and other cities had been facing difficulties in procuring commercial LPG cylinders, leading to a temporary reduction in kitchen operations and even some outlets closing or operating with limited menus. Restaurant owners previously argued that the increased cost and supply uncertainty of gas made their operations more expensive, with some outlets responding by adding supplementary charges to customer bills.
However, consumer rights advocates and experts welcomed the CCPA’s move. Advocate Gyanraj Sant, Vice-President of the Pune District Consumer Advocates Association, noted that charging customers extra for gas without consent goes against the fundamental principles of fair trade and consumer protection, especially when the charges are not clearly justified or mandated.
The CCPA also advised customers on how to address such situations:
- Refuse to pay any extra fees not included in the menu price.
- Ask the restaurant to remove the charge from your bill.
- File a complaint via the National Consumer Helpline (dial 1915) or through the e-Jagriti portal if the charge is not removed.
The authority stated that it is closely monitoring compliance across the country and will take action where violations are found, reinforcing pricing transparency in the hospitality sector.
In summary, diners should only be charged the menu price and applicable taxes on their bills – and any attempt by a restaurant to separately list “gas fees” or similar surcharges can now be challenged as illegal under consumer law. With rising awareness and enforcement by the Central Consumer Protection Authority, customers are urged to question unfair charges and report them for redressal.
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