Unfair practice: Hotels, Restaurants can't levy LPG charges: Govt

The Government has barred Hotels and restaurants from adding default fuel-related charges, practice termed unfair trade under Consumer Protection Act, 2019.Central Consumer Protection Authority (CCPA) issues advisory to prevent unfair trade practices relating to levy of “LPG Charges” and similar charges in hotels and restaurants. Observing that such charges are being imposed by default to circumvent existing guidelines on service charges, the Authority has issued a fresh advisory under section 10 of the Consumer Protection Act 2019 directing that no such charges shall be levied automatically, and warned that violations may invite strict action.
The CCPA has received complaints that certain hotels and restaurants are levying such charges in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes. Such practices result in lack of transparency and impose unjustified costs on consumers.The CCPA has clarified that input costs such as fuel, LPG, electricity, and other operational expenses are part of the cost of running a business and must be factored into the pricing of menu items. Recovery of such costs through separate mandatory charges constitutes an unfair trade practice under Section 2(47) of the Act.
The Petroleum Ministry on Wednesday said that the Centre is prioritising Piped Natural Gas (PNG), while noting that there is adequate petrol and diesel available and the fuel prices have not changed. Addressing the Inter-Ministerial briefing, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, highlighted that the government is ensuring 100 per cent domestic PNG supply and has issued a notification, streamlined and time-bound framework for laying and expanding pipelines across the country, and developing the natural gas infrastructure. "Domestic PNG connection is the government's priority, and 100 per cent supply is being made available to consumers. 100 per cent CNG is also being made available to consumers," it said.