The National Pharmaceutical Pricing Authority (NPPA) has capped the trade margins of oxygen concentrators at the first point of the sale of the product (price to distributor) and directed the manufacturers to fix the maximum retail price accordingly, a Chemicals and Fertilizers Ministry notification said on Friday. The trade margin has been fixed at 70 per cent.

The decision comes following various petitions and public interest litigations filed in various courts across the country for the regulation of price of oxygen concentrators at this critical time of public health emergency.

Also read: Ola launches free door delivery of oxygen concentrators to Covid-19 patients in Chennai

According to the Ministry’s notification, the manufacturers of oxygen concentrators need to submit the information containing details of the price to distributors, retail price, existing and revised MRP, by using the prescribed formula involving sales for the current month and total quantity sold in the current month and GST etc.

Delhi HC directive

It may be recalled that the Delhi High Court on May 17 had directed the government to consider capping the retail price as requested by petitioners by adopting the formula so that the customers do not feel swindled. Thereafter, the Health Ministry had also requested the Department of Pharmaceuticals to advise NPPA to speedily facilitate in implementing the order in larger public interest.

Oxygen concentrators have been facing a lot of legal issues in recent times after the second wave of Covid pandemic hit the country. Even recently the matter of IGST on oxygen concentrators went up to the Supreme Court of India which stayed the Delhi High Court’s decision to quash the May 1 notification that prescribed IGST at 12 per cent on oxygen concentrators imported for personal use.

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