Common use of Escalation/De escalation of rates (Diesel Price adjustment) Clause in Contracts

Escalation/De escalation of rates (Diesel Price adjustment). Any increase or decrease in the price of diesel rates shall be adjusted on the basis of one litre equal to 4 Km / 10 MTs., which means for every 40 paise increase / decrease in diesel price, one paisa per KM / MT will be allowed in case of increase and will be reduced in case of reduction. The increase or decrease shall be governed on quarterly basis i.e., the increase or decrease during one quarter shall be accounted for in the succeeding quarter. The rates shall remain firm for the intermittent period. The effect of increase / decrease in diesel price shall be considered base rates of diesel at Chandigarh for State of Haryana as applicable on the closing date of tender. (The formula is based on the truck load of 10 Mts., which has been taken for the Administrative convenience and has nothing to do with Motor Vehicle Act (MVA). The contractor has to follow MVA and loading in each truck has to be as per the laden capacity approved and registered. The above formula shall be applicable uniformly for truck operators unions / transport cooperatives and all other tenderers during the contract period or extended period of contract.

Escalation/De escalation of rates (Diesel Price adjustment). Any increase or decrease in the price of diesel rates shall be adjusted on the basis of one litre equal to 4 Km / 10 MTs., which means for every 40 paise increase / decrease in diesel price, one paisa per KM / MT will be allowed in case of increase and will be reduced in case of reduction. The increase or decrease shall be governed on quarterly basis i.e., the increase or decrease during one quarter shall be accounted for in the succeeding quarter. The rates shall remain firm for the intermittent period. The effect of increase / decrease in diesel price shall be considered base rates of diesel at Chandigarh for State of Haryana Punjab as applicable on the closing date of tender. (The formula is based on the truck load of 10 Mts., which has been taken for the Administrative convenience and has nothing to do with Motor Vehicle Act (MVA). The contractor has to follow MVA and loading in each truck has to be as per the laden capacity approved and registered. The above formula shall be applicable uniformly for truck operators unions / transport cooperatives and all other tenderers during the contract period or extended period of contract.