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  • Govt decides to cap prices of medical oxygen to ensure its availability at reasonable rate

    Published on September 27, 2020

    National Pharmaceuticals Pricing Authority (NPPA) has decided to cap the ex-factory price of Liquid Medical Oxygen at manufacturers end at 15 rupees 22 paise per cubic meter exclusive of GST. The present situation of COVID-19 has resulted in increased demand of Medical Oxygen in the country.

    NPPA said, due to absence of price cap on liquid medical oxygen, manufacturers have hiked prices to fillers. During COVID, supply of medical oxygen through cylinders has increased from 10 per cent to around 50 per cent of total consumption. It said, price regulation at this end is imperative for continued availability of medical oxygen across the country.

    Chemicals and Fertilizers Ministry said the demand of medical oxygen has gone up almost four times, from 750 metric ton per day to 2800 metric ton per day. NPA said, to further cap the ex-factory cost of Medical Oxygen Cylinder at filler end at 25 rupees 71 paise per cubic meter exclusive of GST in suppression of the existing Ceiling Price of 17 rupees 49 paise per cubic meter for six months.

    The existing rate contracts of state governments for oxygen purchase, as applicable, will continue, in consumer interest. This will ensure availability of medical oxygen at consumer end at reasonable price both at hospital level and through oxygen cylinders, especially to distant and interior districts.