Bengaluru: With the Central Consumer Protection Authority (CCPA) restricting all hotels and restaurants from levying default charges — such as LPG fees, gas surcharge, and fuel recovery — some eateries in the city are exploring ways to stay afloat in this time of supply crisis.The latest move comes amid rising input costs triggered by the ongoing tensions in West Asia, which have disrupted global fuel supply chains and pushed up LPG prices. TOI recently reported that several Bengaluru eateries were grappling with erratic cylinder supply and sharp price hikes, forcing many to cut down menus, reduce operating hours, or explore marginal price revisions.Associations say their members won’t levy such charges, suggesting price revisions instead, though some fear the higher prices may deter customers.GK Shetty, of Bangalore Hotels’ Association, said: “We’ve received the [CCPA] circular, and what restaurants are doing is clearly wrong. Since this is a central directive, LPG or similar charges cannot be levied under the law. We are also planning to issue a circular to all our member restaurants, making it clear that such charges cannot be imposed. As menus are decided individually, establishments may consider a reasonable price revision of 5-10% if they are facing losses, or rationalise their menus to manage costs. But charging LPG fees separately is completely unacceptable, and we do not support it.”While a few eateries have already hiked the prices of even tea and coffee, a few others are planning to do so soon enough.Veerendra Kamat, owner of Kamat Hotels, said, “Over the past month, sales have dropped 30%, forcing many of us to cut down menus and operating hours. Items like dosas, which were earlier available all day, are now limited to only mornings and evenings as they consume a lot of LPG. We cannot absorb the entire burden. While we need around five cylinders a day, we are currently getting only two. Some rationalisation is unavoidable, and we are considering a 5-10% price hike as passing the entire cost on to customers isn’t fair either.“Another restaurant owner, from BTM Layout IV Stage, said: “This is not at all fair on small eateries like us. When we hike prices, customers won’t come. But when airlines charge for fuel separately, why shouldn’t we levy LPG charges? Why are we the only ones being questioned?”This is not the first time the issue of add-on charges has come under scrutiny. Last month, the Centre issued fresh guidelines prohibiting hotels and restaurants from levying service charges by default, making it clear that such fees must be voluntary. The move was taken following multiple complaints from consumers.Part of business operations: AuthorityCCPA, acting on complaints received via the National Consumer Helpline and media reports, noted that charges are being imposed over and above menu prices and taxes, often to bypass norms on service charges. The authority said these costs must be built into menu pricing and not added separately.Expenses such as fuel, LPG, and electricity are part of business operations and cannot be passed on as mandatory add-ons. Any such levy, regardless of nomenclature, would be treated as a violation of existing guidelines issued in July 2022, said the authority, describing hidden add-ons as unfair trade practice under the Consumer Protection Act, 2019.
