Amendment to the Guidelines on Index-based pricing of Petroleum products

The GPPB has recently passed Resolution No. 011-2007 amending the Revised Guidelines on procurement of petroleum, oil and lubricants (POL) through index-based pricing.

The original guidelines per GPPB Resolution No. 05-2005 included lubricants as among the POLs that can be procured through index-based pricing. However, the later amendment per GPPB Resolution No. 09-2006, excluded lubricants. Upon the request of the National Power Corporation, the GPPB restored the item lubricants that can be procured through the said scheme hence, the issuance of Resolution No. 011-2007. the said resolution also gives procuring entities the option to use either fixed or index based pricing in the procurement of lubricants as well as to use the Independent Commodity Information System - London Oil Report (ICIS-LOR) index if the procuring entity's cost benefit analysis or assessment indicates that index-based pricing is more favorable in the bulk procurement of lubricants.