NPPA Fixes Cap Price of Liquid Medical Oxygen and Medical Oxygen
Cylinders
·
Cap
Raised at Filler end to Rs. 25.71/CUM from Rs. 17.49/CUM
[NPPA Press Note dated
26.09.2020]
1. The present situation of COVID-19 has resulted
in increased demand of 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.
2. The demand of 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 three fold price
increase in the Ceiling Price of gaseous Medical Oxygen.
3. The government is committed to 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). Its existing Ceiling Price fixed by NPPA is Rs. 17.49/CUM. However, 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% to around 50% of total
consumption. Price regulation at this end is imperative for continued availability
of medical oxygen across the country.
4. The issue related to availability, including
pricing of oxygen has been under the continued consideration of Empowered Group
2, GOI. The Empowered Group 2 has recommended NPPA to consider capping the ex-factory
price of liquid oxygen in order to ensure its supply to fillers at reasonable prices.
It has also requested NPPA to consider a cap for ex-factory price of oxygen in cylinders
in order to ensure supply of oxygen cylinders from filler at reasonable prices.
5. To deal effectively with the situation, Ministry
of Health & Family Welfare (MOH&FW), GOI has vide its letter dated 23.09.2020
conferred the delegation of powers under Section 10(2) (l) of Disaster Management
Act, 2005 to NPPA to take all necessary steps to immediately regulate the availability
and pricing of LMO and Medical Oxygen in cylinder.
6. The Authority deliberated upon the matter in
its extra ordinary meeting held on 25.09.2020. It has been decided to invoke extra-ordinary
powers in public interest, under Para 19 of DPCO, 13 and under Section 10(20) (l)
of Disaster Management Act, 2005 to deal with the emergent situation arising due
to the pandemic. Accordingly it has been decided:
To cap the ex- factory price of Liquid Medical
Oxygen (LMO) at manufacturers end at Rs. 15.22/CUM exclusive
of GST; and
To further cap the ex-factory cost of Medical Oxygen
Cylinder at filler end at Rs. 25.71/CUM exclusive of GST
in suppression of the existing Ceiling Price of Rs. 17.49/CUM,
subject to transportation cost fixation at state level, for six months.
7. 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.
The above measures 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.