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- Impact of capping on price of Medical Oxygen by NPPA - September 26, 2020
National Pharmaceutical Pricing Authority (NPPA) has fixed price of Oxygen IP but not described to Form of Oxygen, it has 2 forms
• LMO (Liquid Medical Oxygen in tankers)
• Oxygen IP (Gaseous Medical Oxygen in cylinders)
The price fixation of 17.49 per m3 cubic meter is applicable for both Oxygen IP (Liquid Medical Oxygen Form in tankers) and also for Oxygen IP (Gaseous Medical Oxygen form in D type or B Type cylinders). Re-fillers of Oxygen IP in Gas Cylinders informed that following additional cost incurred by them to fill Oxygen IP (Gaseous Medical Oxygen form in Cylinders)
There is no ceiling on Industrial Oxygen and Liquid oxygen to be filled in Industrial Oxygen Cylinders. This also encourage the ASUs to supply more Liquid Oxygen for Industry in the name of honouring earlier contracts with Industry there by reducing the availability of Liquid Oxygen for Medical Oxygen /Oxygen IP
1. TRANPORTATION OF LIQUID FROM ASU PLANT TO THEIR UNIT
2. DECANTING LOSSES FROM TRANSPORT TANK TO THEIR STORAGE TANK
3. LABOUR COST FOR FILLING OF GAS IN CYLINDERS
4. FILLING LOSSES FROM LIQUID TO GAS IN CYLINDERS5. LOGISTICS OF EMPTY AND FILLED OXYGEN CYLINDERS TO HOSPITALS
Therefore the view point that NPPA price should differ in Liquid Form and Gaseous Form of Oxygen I.P. or Rates of Liquid Medical Oxygen (LMO) from Air Separation Units should be brought down to rates of 2019 . Presently it is Rs 15 to 16 whereas it was around 10 in 2019.
This issue has already brought in knowledge of Drugs Controller General India (DCGI) and CDSCO by state of Haryana and discussed with CDSCO. Presently Re fillers have increased the transportation charges to meet above stated expenses and make their profit.
More over Hospitals are either not showing Oxygen charges in bills raised for treatment of COVID positive patients or including the oxygen administration charges and in both cases making the ceiling prices fixed by NPPA ineffective and not showing the component of only Oxygen charges to save Hospitals from any action under Disaster Management Act or DPCO under Essential Commodity Act.
Although many states have fixed COVID patients treatment charges which includes oxygen and it’s administration.
Narender Ahooja, Author is working as State Drugs Controller, Food and Drugs Administration, Haryana
Disclaimer: This is the personal opinion of the writer and anyone may have a different opinion about this product and will not attract any legal implication.
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