Interim order passed by the High Court of Kerala on supply of oxygen to private hospitals in Kerala, 07/07/2021

  • 07/07/2021

Interim order passed by the High Court of Kerala in the matter of Kerala Private Hospitals Association Vs State of Kerala & Others dated 07/07/2021.

The matter related to supply of oxygen to private hospitals in Kerala and directions to stop the suppliers of oxygen from increasing the price of oxygen during the period of pandemic. It was brought to the attention of the court that without fixing the transportation cost that can be charged by the manufacturer/supplier of oxygen, the Ext.P5 order cannot be effectively implemented.

Ext.P5 is the order issued by the Ministry of Chemicals and Fertilizers which prescribed the maximum price (ex-factory) exclusive of Goods and Services Tax as applicable in respect of liquid medical oxygen as Rs.15.22 per cubic meter and oxygen inhalation in the cylinder was 25.71 per cubic meter.

The HC of Kerala said that prices of liquid medical oxygen and oxygen inhalation in cylinders could be controlled effectively, only if the transportation cost which can be charged by the manufacturer/supplier is fixed.

The court directed the Kerala government to expedite the process initiated for fixing the transportation cost and asked the state government to devise a mechanism in the meanwhile and ensure compliance of Ext.P5 order.