The National Pharmaceutical Pricing Authority (NPPA) on 30th May 2022, has further extended the capping on the trade margin of oxygen concentrators at first point of sale for one more month, upto 30th June 2022 or till further order.
NPPA in its earlier notification, 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.
