NEW DELHI: Amid reports of shortage and hoarding of oxygen, a crucial medical supply required to treat a large number of Covid-19 patients, the Centre on Saturday fixed the price caps for liquid medical oxygen for next six months.
As per a notification issued by the National Pharmaceutical Pricing Authority, medical oxygen’s price has been fixed at Rs 15.22 per cubic meter (exclusive of GST) at manufactures’ end and its price at fillers’ end has been fixed at Rs 25.71 per cubic meter, subject to transportation cost fixation at state level.
The development comes as the demand of medical oxygen has gone up almost four times, from 750MT per day to 2800 MT in the wake of the pandemic.
“This has caused strain at all levels in the value chain of production and supply,” said the government in a statement.
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, it said.
The Centre also said that the decision was being taken by the NPPA following the recommendations of an expert committee and the Union Ministry of Health and Family Welfare under the Disaster Management Act, 2005 given the extraordinary circumstances.
The existing rate contracts of state governments for oxygen purchase will continue in consumers’ interest and the ex-factory price cap of LMO and oxygen gas cylinders will be applicable only to domestic production.
“These measures will ensure availability of medical oxygen at reasonable price both at hospital level and through oxygen cylinders, especially to distant and interior districts,” said NPPA.
The Centre has put the onus on states to ensure oxygen availability for needy patients.