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Restaurants Introduce LPG Surcharge Amid Ongoing Crisis

As the LPG crisis escalates due to geopolitical tensions, restaurants in Bengaluru have begun adding an 'LPG surcharge' to bills, raising questions about its legality. A viral incident involving a cafe's bill highlights consumer concerns over unexpected charges. The Bengaluru Hotels’ Association reports significant losses for restaurants, while the Consumer Protection Act offers insights into the legality of such fees. This article delves into the implications of these charges and the current state of LPG supply in India, providing essential information for consumers navigating this complex situation.
 

Rising LPG Prices Prompt New Charges


As the LPG cylinder crisis intensifies due to the ongoing conflict involving Israel, the US, and Iran, social media has been buzzing with reports of restaurants implementing a separate "LPG surcharge" on bills. A notable incident occurred in Bengaluru, where a cafe's bill went viral for including a five percent "gas crisis charge". This charge raised eyebrows, especially since it was applied to a simple lemonade order. The total for two lemonades, priced at Rs 179 each, came to Rs 358, but the final bill was Rs 374 after adding the gas charge and GST.


Consumers are questioning the legitimacy of this additional charge and what legal protections exist regarding such practices.


Insights from the Bengaluru Hotels’ Association


The Bengaluru Hotels’ Association reports that restaurants are experiencing losses of approximately 25-30%, with many popular menu items being removed due to fuel shortages. Despite government assurances of improved fuel availability, restaurant operators are still struggling to secure necessary supplies for their kitchens.


This raises the question: Is it permissible for restaurants to impose such charges, which many consumers perceive as deceptive?


Legal Perspective on Additional Charges


According to the Consumer Protection Act of 2019, any unfair trade practice that misleads consumers regarding pricing or forces them to pay undisclosed fees is prohibited. The Act stipulates that any charge not disclosed prior to placing an order can be contested. Charges that appear on a bill without prior consumer knowledge may be considered unfair practices.


In 2022, the Central Consumer Protection Authority (CCPA) issued guidelines stating that consumers should not face mandatory charges not included in the displayed price. While the Act does not specifically mention an LPG surcharge, the principle applies since such charges are added to the menu price.


Restaurants can adjust menu prices to reflect increased costs and inform customers of any additional charges before an order is placed. However, they cannot introduce new charges after a purchase has been made.


The current LPG crisis in India is largely attributed to significant disruptions in global supply chains due to the escalating conflict in West Asia. Fortunately, two LPG tankers have successfully navigated the Strait of Hormuz and reached Indian ports, including the Nanda Devi tanker, which delivered over 47,000 metric tonnes of liquefied petroleum gas to Vadinar Port in Gujarat.