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Price of Diesel increased after Purchase Order is served to Oil Company

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Price of Diesel increased after Purchase Order is served to Oil Company

Post by Jovinal on Mon Dec 26, 2011 2:18 pm

What is the remedy if after we served the Purchase Order to the winning Oil company, the price of Diesel increased which resulted to exceed the ABC of the said procurement?
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by alpha1 on Tue Dec 27, 2011 4:17 pm

It is now the responsibility of the oil company to shoulder the increase in prices because it (the company) has quoted a price prior to the increase besides if it has already accepted the purchase order then it is bound to deliver the goods.
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by Jovinal on Tue Dec 27, 2011 11:14 pm

This is one of the reasons why Gasoline Station will accept the RFQ due to the price fluctuations. I wish there will be Gppb Resolution that will provide a ruling that can answer the issue on price fluctuation of OIL.
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by friend toe on Tue Feb 14, 2012 6:42 am

correct... just a suggestion for little effect on the quantity in case of fluctuations, limit the procurement to a quantity for a certain short period of requirement only... though this will entail paper works...
on the other hand, for commodities like fuel which is a subject to price fluctuation... a GPPB resolution is indeed needed something like exceptional adjustments or granting of price escalation for price increase and or automatic reduction of quantities be allowed...
or in case of price decrease, automatic increase in quantities be delivered...
it's just a suggestion... Wink

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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by Recks1925 on Tue Feb 14, 2012 6:29 pm

ASk ko lang po.. don't you have a credit line to a previously evaluated and approved gasoline station? KAse this is what we usually do.. we set criteria and conduct evaluation of nearby stations,then apply for credit line. The company will be charged based on the prevailing cost per liter at the time the Purchase oRder is served.
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by Jovinal on Tue Feb 14, 2012 9:35 pm

Your practice is not in accordance with standard procurement procedures.
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by Recks1925 on Wed Feb 15, 2012 12:21 pm

It may not be in accordance sir, but I think it is better to do it that way. Our fuel requirement is not even suited for public bidding because of the quantity. Having a credit line with a station duly found to offer the lowest in the area is, i think, the most suitable method. Every fluctuation of course is monitored and checked. No matter how you conduct canvassing the same station will still offer the lowest regardless of fluctuation or not because no discount is given. Bulk requirements though public biding is different, for it is governed by Apprendix 16 of RA 9184 and suplpier may offer discounts due to bulk orders.
It's only my opinion sir, in case there are better ways to address this issue, we'll gladly accomodate it. Smile
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by Jovinal on Wed Feb 15, 2012 8:33 pm

I think this is the problem mostly to all agencies that dont have gasoline storage, the GPPB resolution No. 11-2007 on Index Based Pricing for gasoline is of no help, I dont know why GPPB-TSO did not issue any resolution to answer this problem, the present legal mode of procurement is not practical on procurement of gasoline, because of constant price flunctuation.
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Re: Price of Diesel increased after Purchase Order is served to Oil Company

Post by friend toe on Mon Feb 27, 2012 10:14 pm

kaya nga po dapat magkaroon ng exemtion to the rule when comes to fuel procurement... one thing more eh balance naman angprevailing price nyan in any community di ba?...

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