NPM 034-2008

Requesting Entity: Presidential Commission on Good Government

Issues Concern: Petroleum, Oil, and Lubricants Procurement



Whether or not GPPB Resolution 11-2007 applies only to bulk procurement of Petroleum, Oil, and Lubricant (POL) Products through public bidding by government agencies and instrumentalities whose POL procurement is a major requirement in their operations.

[W]hile GPPB Resolution 11-2007 provides that the use of index-based pricing shall not be made available to POL procurement from retailers or dealers other than major suppliers, or from those engaged in the business of selling the same to the general public for ultimate consumption and which are sold at pump prices, there is nothing said guidelines which gives license to any procuring government entity to do away with public bidding. In this case, these government entities must still undergo public bidding for their POL procurement but, they are not entitled to the use of an index-based pricing scheme for the purpose.

Thus, from the foregoing, it may be said that, while it may be true, as impliedly proferred by PCGG, that it is a government agency whose POL procurement is not a major operational requirement necessary for the prosecution of its principal mandate, the fact remains that its procurement activities, as a government entity, remain to be covered under R.A. 9184. And, absence any exceptional conditions that would warrant resort to alternative method of procurement, the default mode is still public bidding.