Hindustan Times ST (Jaipur)
Government caps trade margin on oxygen concentrators at 70%
NEW DELHI: The government has capped the trade margin on oxygen concentrators at 70% in order to keep in check the price of the much in demand critical life saving component amid the second wave of the coronavirus pandemic.
The trade margin has been capped at 70% on price to distributor level on oxygen concentrators.
In an official release, the Chemicals and Fertilisers Ministry said the decision has been taken in view of the extraordinary circumstances arising due to the pandemic which has resulted in volatility in Maximum Retail Prices (MRP) of oxygen concentrators.
The government has thus decided to step in to regulate the price of oxygen concentrators, the release issued on Friday noted.
As per information collected by the government, margin on the oxygen concentrators at the distributor level currently ranges up to 198%, it added.
“By invoking extraordinary powers under Para 19 of the DPCO, 2013 in larger public interest, NPPA has capped the trade margin up to 70% on price to distributor (PTD) level on oxygen concentrators,” the release said.
Union minister of chemicals and fertilisers Sadananda Gowda in a tweet said the trade margin has been capped in consumer interest to ensure its continued availability at affordable price during the pandemic.
“The price regulation will safeguard profitability and prohibit profiteering at the cost of consumer during the pandemic,” he added.
The order shall be applicable up to November 30, 2021, subject to review, the release said.