ESCALATION/DE-ESCALATION FORMULA Clause Samples

ESCALATION/DE-ESCALATION FORMULA. The rate of escalation/de-escalation of fuel (Diesel) shall be considered on increase/decrease of more than 5% of the fuel price on pro-rata basis. The calculation for price escalation/de-escalation shall be calculated as per the formula detailed below. The contractor should accordingly furnish increase/ decrease of the fuel price immediately in the running bills For Fuel: [(New price of fuel per ltr.) – (the price of fuel per ltr. on the base date of the Tender)]*6 litre/hr Fuel & lubricant is to be provided by the contractor.