NPPA caps price of liquid medical oxygen, medical oxygen cyl
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Amid rising demand for medical oxygen which is essential in the treatment of moderate to severe Covid-19 patients, the pharmaceutical pricing regulator has capped the price of medical oxygen cylinders and liquid medical oxygen (LMO) for six months to ensure availability of medical oxygen at stable rates.

While issuing the order, the National Pharmaceutical Pricing Authority (NPPA) said the high price of LMO was impacting the operational viability of fillers, creating a supply shortage.

The demand for medical oxygen has increased up to almost four times from 750 MT per day to around 2,800 MT per day after the Covid outbreak. Around 6% of around 9.6 lakh currently “active” Covid cases need oxygen support.

NPPA has fixed the ex-factory price of LMO at manufacturers end at Rs 15.2 per cubic metre exclusive of GST, and further capped the ex-factory cost of medical oxygen cylinder at filler end at Rs 25.7 per cubic metre (again exclusive of GST) in the suppression of the existing ceiling price of Rs 17.49 per cubic metre, subject to transportation cost fixation at the state level, for six months.

“It is informed that due to increase in price of LMO being supplied to filler, the margins for them have been squeezed and are impacting their operational viability. Due to excess demand, delivery through cylinders has increased from 11% pre-Covid to 50% of current oxygen supply.

It is therefore, imperative to cap price of LMO to ensure uninterrupted availability of Medical Oxygen though cylinders to the hospitals and consumers,” the order said.

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