Impact of capping on price of Medical Oxygen by NPPA

Food and Drugs Administration (FDA) Haryana welcomed the price capping notification dated 25-09-2020 issued by National Pharmaceutical Pricing Authority (NPPA).

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NPPA Price of drugs
N K Ahooja
2 min. read

Food and Drugs Administration (FDA) Haryana welcomed the price capping notification dated 25-09-2020 issued by National Pharmaceutical Pricing Authority (NPPA).

To download the notification, click here

Narender Ahooja, State Drugs Controller, Food and Drugs Administration (FDA) Haryana said “The present situation of pandemic 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.”

He further added “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.”

“This was very much required and this issue was flagged by FDA Haryana during discussion at various platforms, webinars etc.  NPPA has done this using extraordinary powers in pandemic situation of COVID for six months” said Narender Ahooja.

Also read related news: NPPA steps in to cap price of Medical Oxygen

Ahooja said “This notification is need of the hour and a visible impact will observed during coming days. This will definitely help in:”

1. Maintaining availability and smooth supply chain of Medical Oxygen in Cylinders. As per available data there is sufficient production of Liquid oxygen by Air Separation Units in the country.

2. Medical Oxygen re-fillers will not resort to hoarding or black marketing as their demand of separate price capping for Liquid Medical Oxygen in tankers and Medical Oxygen in Cylinder has been taken care by NPPA.

3. No one can ask for excessive charges in name of Transportation as margins have been taken care.

4. Now tendency to divert Liquid Oxygen to Industrial Oxygen will reduce as now this notification has taken care of Medical Oxygen re-fillers. 

5. Now Hospitals will install Liquid Oxygen Tanks due to difference of price of Liquid Medical Oxygen and Oxygen IP Medical Oxygen in cylinders. 

6. Now Hospitals will not be able to charge more for Medical Oxygen from patients. 

Narender AhoojaAuthor 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.

To read other articles of the author, click here


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