Philips reduces oxygen concentrator prices due to waiver in custom duties

Philips has reduced the price of oxygen concentrators by 7% in the Indian market to pass on the benefits of custom duty reduction by the government at a time when most other companies are forced to increase prices due to short supplies and an increase in sourcing prices.

Daniel Mazon, vice chairman and MD at Philips India, said the company was one of the first to act on the customs benefit announced on April 27, and pass on the benefit to our customers by reducing the MRP further. The company's oxygen concentrator maximum retail price is now Rs 68,120 as compared to Rs 73,311 earlier.

The Centre last week waived custom duty and health cess for three months on import of medical oxygen and a slew of equipment related to production of the gas including oxygen concentrators at a time when India is hit hard by the second wave of Covid-19.

Most other companies and importers of oxygen concentrators have said they would need to hike prices by up to Rs 12,000 due to increase in freight rates due to mass cancellation of cargo flights from China and increase in production cost by Chinese manufacturers.

However, several people have said some dealers are selling these machines over their MRP in worst hit markets like Delhi-NCR due to demand exceeding supplies amidst the health crisis.