Covid-19: As demand for Oxygen cylinders is up four times, NPPA steps in to cap price

The National Pharmaceutical Pricing Authority (NPPA) has decided to cap the ex-factory price of Liquid Medical Oxygen (LMO) at manufacturers end at Rs. 15.22/CUM exclusive of GST.

It has further decided to cap the ex-factory cost of Medical Oxygen Cylinder at filler end at Rs. 25.71/CUM exclusive of GST in the suppression of the existing Ceiling Price of Rs. 17.49/CUM, subject to transportation cost fixation at the state level, for six months.

It said, "The existing rate contracts of state governments for oxygen purchase, as applicable, shall continue, in consumer interest. The ex-factory price cap of LMO and oxygen gas cylinders will be applicable to domestic production."

NPPA believes that these measures will ensure the availability of medical oxygen at consumers end at reasonable prices both at the hospital level and through oxygen cylinders, especially to distant and interior districts.

NPPA has to interview as the present situation of COVID-19 has resulted in increased demand for Medical Oxygen (MO) in the country and hence its availability is of utmost importance. Many of the States/UTs are dependent on the medical oxygen supply from other States/UTs.

The demand for Medical Oxygen has gone up almost four times, from 750MT/day to 2800 MT/day. This has caused strain at all levels in the value chain of production and supply. The manufacturers of Medical Oxygen and Fillers have given representation to the Government for up to a three-fold price increase in the Ceiling Price of gaseous Medical Oxygen.

The government is committed to an uninterrupted supply of Medical Oxygen especially in the times of pandemic. Oxygen Inhalation (Medicinal Gas) is a scheduled formulation, covered under the National List of Essential Medicines (NLEM).