NPPA revises price of LMO, Oxygen Inhalation

NPPA in its 85th Authority meeting under DPCO, 2013 held on 23.03.2021, noted that the price fixed for Liquid Medical Oxygen (LMO) and Oxygen Inhalation (Medicinal gas) vide a notification dated 25.09.2020 is applicable up to 31.03.2021.

The Authority further observed that an Inter-ministerial meeting was held on the issue of medical oxygen in which the Drug Controller General India (DCGI) and the representative of the Ministry of Health & Family Welfare, Government of India stressed that the requirement of Liquid Medical Oxygen (LMO) and Oxygen Inhalation (Medicinal gas) is still persisting to cope with the COVID 19 pandemic.

In the meeting, it was also decided that comments from the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, be obtained.

NPPA further noted that the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India vide its Office Memorandum dated 12.03.2021 stated as follows: "… after examination of the recent increase in the number of confirmed COVID cases, it is recommended that NPPA order dated 25.09.2020 may be extended by another 6 months, after which the issue may be reviewed."

After detailed deliberation, the Authority considered the matter and, in view of continuing extraordinary circumstances due to the COVID pandemic, decided that the revised price of Liquid Medical Oxygen (LMO) and Oxygen Inhalation (Medicinal gas) fixed vide SO. 3322 (E) dated 25.09.2020 be extended up to 30.09.2021 or until further order, whichever is earlier, in public interest.

Medical Dialogues team had earlier reported that according to the direction given by The Ministry of Health and Family Welfare (MoHFW), the National Pharmaceutical Pricing Authority (NPPA) had capped the price of liquid oxygen at Rs. 15.22 per cubic meter at the manufacturing end, whereas, for oxygen cylinders, the price cap was Rs 25.71 per CM. Both prices were exclusive of the GST.

In view of this, NPPA, in its latest notice stated,

"The prices of 'Liquid Medical Oxygen (LMO)' and 'Oxygen Inhalation (Medicinal gas) in cylinder' fixed under Para 19 of the DPCO, 2013 and powers conferred under section 10(2)(l) of Disaster Management Act, 2005 delegated by Ministry of Health and Family Welfare vide Order No. Z-33014/45/2020-RCH/Pt.File-3 dated 23.09.2020, vide notification S.O. 3322(E) dated 25.09.2020, issued by National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India are extended upto 30.09.2021 or until further order, whichever is earlier."