NPPA caps price of liquid medical oxygen, medical oxygen cylinders

With the demand for oxygen rising due to a surge in the Covid-19 cases, the National Pharmaceutical Pricing Authority on Saturday put a cap on the price of oxygen so that the life-saving gas is available to everyone at a reasonable price.

India’s daily oxygen demand has gone up from 750 metric tonnes to 2,800 MT due to the pandemic.

Currently, 50% of the liquid oxygen produced is being used for medicinal purposes due to Covid-19 as against 15% in the pre-pandemic days. Similarly due to excess demand, delivery through cylinders has increased from 11% pre-Covid to 50% of current oxygen supply.

Notwithstanding the government’s repeated assurances on oxygen availability because of adequate production, there are reports of oxygen prices going north. The issue was flagged by several chief ministers during their review meeting with the Prime Minister earlier this week.

The NPPA has now put a cap both on liquid medical oxygen (LMO) that is carried in tankers and supplies to the hospitals as well as oxygen that is available in stand-alone cylinders.

For the LMO, the prices have been fixed at Rs 15.22 per cubic metre whereas, for oxygen cylinders, the price cap is Rs 25.71 per CM. Both prices are exclusive of the GST.

Sources said the capping price was determined after taking into account the expenses involved in refilling a cylinder and transportation charges.

The pharmaceutical price regulator clarified that the existing rate contracts of state governments for oxygen purchase will continue in consumer interest and the ex-factory price cap of LMO and oxygen gas cylinders will be applicable to domestic production.

“The measures taken by the NPPA will ensure availability of medical oxygen at consumer end at a reasonable price both at hospital level and through oxygen cylinders, especially to distant and interior districts,” the Union Ministry of Chemicals and Fertilizer said in a statement.

Since regular oxygen manufacturers produce 6400 MT of oxygen every day. Another 550 MT comes from the steel manufacturers, there is enough headroom even after taking the excess demand into account.

The need, the officials said, was better inventory management for uninterrupted supply of oxygen to Covid-19 and non-Covid patients.

With more than 85,000 new cases in the last 24 hours, the total number of active corona cases stands at 9.60 lakh. The death toll is 93,379 out of which 1089 were added in the last 24 hours.