The National Pharmaceutical Pricing Authority on 30th November 2021 has decided to continue capping the trade margin of Oxygen Concentrator at first point of sale (price to distributor) till 31st May 2022 or till further order.
NPPA in its earlier notification dated 3rd June 2021 has capped the price of oxygen concentrator through trade margin rationalisation approach at first point of sale of product, referred as Price to Distributor, as per a prescribed formula by invoking Paragraph 19 of Drugs Prices Control Order (DPCO) – 2013 in wake of increase in demand due to pandemic.
The formula prescribed for the Maximum Retail Price (MRP) is Price to Distributor (PTD) + (PTD x TM) + Applicable GST, where TM = Trade Margin not exceeding 70% and it has also directed manufacturers to fix MRP of oxygen concentrators and submit the information containing details of PTD, Retail Price, existing and revised MRP, by using the formula prescribed and other details for oxygen concentrator to NPPA.
The revised prices shall come into effect from June 9, 2021 and the price so fixed shall remain in force up till November 30, 2021. However through this notification it has been extended till 31st May 2022.
