mid-day investigation: Commercial industry selling oxygen to hospitals at thrice the market rate

Cylinder refill prices have gone up five times and oxygen concentrator prices have almost doubled. A deep dive

mid-day investigation: Commercial industry selling oxygen to hospitals at thrice the market rate

Yasin Khan, a staffer of Shree Siddhi Indian Gases and Equipment, mid-day spoke to posing as a customer

Oxygen, be it for hospitals or citizens getting treatment at home, is getting costlier with every passing day. On the one hand, while the cost of refilling oxygen cylinders has increased manifold, the cost of oxygen concentrators used at home has also surged by 25-50 per cent. During an on-ground investigation on Tuesday, mid-day found that even as the pandemic rages, the shortage has driven the prices to three-five times the previous cost.

Oxygen cylinders at Shree Siddhi Indian Gases and Equipment, at Reay Road

On Tuesday, mid-day visited Kolsa Bunder and Daru Khana areas in Reay Road, which houses many scrap units. Maximum number of industries located there use oxygen for their work. With supply of oxygen for industrial purposes stopped by the government, 90 per cent of the suppliers have shut shop. However, those who are managing to procure some stock, are selling it at a premium, because of what they say is the high cost of procurement.

Shree Siddhi Indian Gases and Equipment private limited company at Ghas Bunder, Daru Khana deals in gases like oxygen, nitrogen, hydrogen, helium, and medical oxygen. mid-day posed as a customer in need of oxygen and video-recorded the conversations with the various sellers.

Yasin, an employee at Shree Siddhi Indian Gases and Equipment, said, “We have limited cylinders available. We are supplying it to hospitals and COVID patients. The rate of an empty 10-litre capacity cylinder is Rs 10,000. Refilling it would cost Rs 1,600.” The rate of refilling per cylinder was Rs 300 earlier. Yasin added, “The rate charged by the supplier itself is costly. Commercial use of oxygen has completely stopped.”

The rise in prices comes even as the government has routed all industrial oxygen to hospitals

Shahnawaz Shaikh, who sold his SUV during last year’s lockdown, to provide oxygen to needy COVID-19 patients through his Unity and Dignity Foundation, said, “Earlier, an oxygen cylinder of five litres would cost Rs 3,000-Rs 4,000, but now it costs Rs 6,000-Rs 7,000. While a 10-litre cylinder costs three times more than earlier. Previously, it would cost Rs 5,000-Rs 6,000, but now it costs Rs 18,000-Rs 20,000 rupees. This rise in cost is shocking.”

Raza Ahmad Qureshi, 77, a Malwani resident, who has been suffering from asthma for a decade, has been worried about the shortage, too. Qureshi’s son, Gohar, an interior designer, used to get cylinders from a local NGO but since his father needed it continuously, the arrangement wasn’t sustainable. Gohar said, “For the past two-three years, my father has been needing oxygen on a daily basis. I rented an oxygen concentrator for Rs 15,000 per month. I paid a Rs 10,000 deposit. Every 24 hours, I have to stop the machine to let it cool. During that one hour, however, if my father needs oxygen, I had no backup. So I have also one oxygen cylinder.”

Concentrators’ costs rise

mid-day spoke to Sai Surgical at Juinagar, which provides oxygen concentrators, regarding their price. A representative for the company, Vinod Deshmukh, said, “We are currently running short of machines. A normal machine having a capacity to produce 5 litres of oxygen used to cost Rs 35,000. Now it costs Rs 55,000 plus GST. A booking two days in advance is required for the same.”

mid-day also found that pharmacies and surgical equipment suppliers have increased the rent for the machines. “Earlier, we used to provide the machines at Rs 10,000 deposit and Rs 3,000 to Rs 4,000 monthly rent. But now, the deposits have doubled to Rs 20,000 and rent has reached Rs 10,000 at some places,” said a supplier from Mulund. “Getting machines has become extremely difficult. If anyone makes it available, it will be expensive.”

Rs 10K
Cost of one 10-litre capacity cylinder at a Reay Road supplier

Rs 1,600
Cost of refilling a 10-litre capacity cylinder

Rs 300
Earlier cost of refilling a cylinder

Rs 4,000
Earlier approx rent of an oxygen concentrator

Rs 10,000
Current approx rent of an oxygen concentrator

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