Government extends oxygen price cap for another three months


As COVID-19 cases rise across the globe, the Indian government has extended the trade mark-up cap on oxygen prices for three months. It will now expire on March 31.

An order from the National Pharmaceutical Pricing Authority and the Ministry of Chemicals and Fertilizers announced on Friday the government’s decision to extend fixed prices for liquid medical oxygen (OMT), oxygen cylinders and oxygen concentrators until March 31.

This capped mark-up also applies to five medical devices – pulse oximeters, blood pressure monitors, nebulizers, digital thermometers and glucometers.

The central government in June 2021 had intervened during the second wave of the COVID pandemic to regulate oxygen prices in India. It capped markups at 70% on the distributor-level price on oxygen concentrators.

Margins at the distributor level in June were around 198%, the Ministry of Chemicals and Fertilizers reported.

Since its implementation, the price cap order has been extended several times. The last extension, on July 4, 2022, was due to expire in December 2022. It is now applicable until April 2023.

First post: January 2, 2023 9:39 a.m. STI


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