GENERAL HEADQUARTERS

ARMED FORCES OF THE PHILIPPINES

Camp General Emilio Aguinaldo
Quezon City

26 July 2004

STANDING OPERATING PROCEDURE

NUMBER 12

MANAGEMENT OF REGULAR POL, AUGMENTATION POL AND

STRATEGIC POL RESERVE STOCKS

1. REFERENCES:

a. Republic Act # 9184 dtd 10 Jan 03 re Modernization,

Standardization and Regulation of the Procurement Activities of the Government and for
other purposes.

b. Executive Order # 235 dtd 08 Sep 03; Subject: Streamlining the

Rules and Procedures of Defense Contracts.

c. COA Circular #91-200c dtd 09 Sep 91 classifying POL as Inventory

d. AFP ISO Plan “Bantay Laya”

e. AFP Comptroller Letter #91-81 dated 31 Oct 91; Subject: Payment

and Liquidation of POL Guaranty Deposit.

f. Logistics Letter Directive Nr SP-03-03 dtd 5 Nov 03; Subject: AFP

Fleet Card System

g. Letter Directive from CSAFP dtd 13 Oct 03; Subject: Strategic POL
Reserve Stock.

h. Letter Directive from CSAFP dtd 10 Feb 04; Subject: Utilization of

POL Budget.

2. GENERAL:

Petroleum, Oil and Lubricants (POL) are strategic supply items of the
AFP. It is therefore crucial for the AFP to establish a responsive, reliable and efficient
petroleum logistics system for the continuous supply and delivery of these commodities
so that these are available in the right quantity and quality when needed and where
needed.

3. PURPOSE:

This SOP prescribes the policies and procedures in the management,

control and utilization of regular POL allocation, augmentation POL and strategic POL
reserves.
 4. SCOPE:

This SOP applies to all AFP units where regular POL program/allocation,
augmentation POL and strategic POL reserve are procured, stored and issued.

5. DEFINITION OF TERMS:

a. Regular POL – POL allocated to a unit based on the approved AFP

program. The program director for regular POL is DCS for Logistics, J4 and Major
Service 4’s.

b. Augmentation POL – POL given to the AFP which is not included in

its original program. Augmentation POL is based on a supplementary POL budget
requested from and approved by DBM.

1) POL for Internal Security Operations (ISO) – This refers to

the additional POL support made available by GHQ to augment operational
requirements of units addressing priority threats.

2) POL for Security Operations Team (SOT) – This refers to the

POL support for SOT taken from regular or augmentation POL.

c. Strategic POL Reserve Stock (SPRS) – these are Petroleum, Oil

and Lubricants procured and stored over and above the regular POL allocation of AFP
units purposely reserved/intended for use in the event of emergency and/or
contingencies.

d. Organic Military Vehicles – all surface vehicles owned and

registered in the name of Armed Forces of the Philippines to include ground
mobility/utility equipment, aircraft, naval vessels/floating assets and engineer
equipment. They are referred to as “authorized vehicles”.

e. Other Authorized Vehicles – vehicles not owned nor registered in

the name of the AFP but are used for AFP related activities. These vehicles are owned
by AFP personnel who by virtue of their positions and designations are authorized to be
issued military vehicles but are not issued due to the non-availability of said vehicles.
“Other authorized vehicles” to be categorized as such shall be certified by the Unit
Commanders or Chief of offices concerned.

f. Air Assets – organic aircraft of Major Services and AFPWSSUs.

g. Floating Assets – organic naval/sea vessels of Major Services and

AFPWSSUs.

h. Issuing Authority – offices/units determined by respective Major

Services/AFPWSSUs granted authority to issue POL products.

i. Strategic POL Dumps – these are Class III Supply Points

strategically located at the different Unified Commands/Major Services use for the
storage and issuance of POL products.

j. AFP POL Card System – is an automated fuel dispensing system

that shall allow fuel issuance to card holders in any participating gasoline service
station.

k. Emergency – an unforeseen combination of circumstances or the

resulting state that calls for immediate action.

l. Contingency – a possible future event or condition of an unforeseen

occurrence that may necessitate special measures.
 m. Annual Procurement Plan – required under RA 9184 as basis for
procurement of any government agency.

6. POLICIES:

a. Approved budget for POL as specified in the General

Appropriations Act (GAA) shall be used solely for its intended purpose, which is for the
procurement of POL products. The realignment/modification on the use of POL budget
is not authorized.

b. Payment for POL deliveries shall be given priority in the allocation

of NCA.

c. POL program/allocation shall be prepared in accordance with

existing rules and regulations.

d. Major Services and AFPWSSUs shall directly observe the

government conservation program.

e. Regular POL allocation is issued to a unit in order for that unit to

perform its mission.

f. Requirement for additional POL allocation shall be justified based

on current balances, past and projected consumption and area of operations by the
requesting unit thru the Unified Commands/Major Services.

g. Augmentation POL should strictly be used for its intended purpose

as in contingency operations.

h. Major Services and AFPWSSUs shall be responsible in providing

necessary control measures to prevent misuse and pilferage of POL products.

i. Exchange or barter of POL products to other items is prohibited.

j. Continuous reconciliation of records between the AFP and the POL

supplier shall be made by GHQ (TQMG) and the Major Services/KBU to update
guaranty deposits.

k. Regular POL audit shall be conducted to ensure proper utilization

of POL funds and the corresponding POL supplies.

l. Priority in programming of Annual POL Budget should be to support

the activities/programs which have a direct impact on the current ISO operational
thrusts and objectives of the AFP.

m. In case augmentation POL is received (for ISO/SOT), it shall be

utilized only as follows:

1) To enhance conduct of major operations in priority areas (as

determined by J3);

2) Support conduct of ISO/SOT in priority guerilla

fronts/potential conflict areas.

n. Augmentation POL (ISO/SOT) shall not be used in filling-up of

SPRS.

o. Allocation of POL shall be in conformity with the final AFP OPB and
in accordance with existing laws, rules and regulations.
 p. Priority in the utilization of POL shall be for operational requirement
then administrative requirements.

q. The establishment of AFP POL Card System in all AFP units shall
be pursued.
r. In areas where SPRS storage facilities are not available, SPRS can
be stored at authorized service stations subject to the recommendations of UC.

s. SPRS shall be managed based on the following guidelines:

1) Major Services and GHQ shall program annually a portion of

their POL Budget for the fill-up of SPRS and its replenishment.

2) SPRS shall not be used as regular POL allocation of units.

3) Issuance of SPRS shall be undertaken only in the following

situations:
(a) Delay in the deliveries of regular POL allocation.
(b) In case of emergency/contingency.
(c ) Unprogrammed activities (e.g. visits/inspections of the
President and other VIPs).
(d) National events/activities.

4) SPRS shall be managed by the Unified commands or the

Major Services Subordinate Unit Commanders where the SPRS is selected.

5) To maintain good and usable condition of POL products,

periodic inventory and inspection of SPRS stocks must be done to avoid wastage due to
long storage.

6) Major Services are authorized to issue/utilize SPRS not

exceeding 50% of their respective regular quarterly POL allocation based on the
situations cited in para p above.

7) Unified Commands with SPRS should seek approval from

GHQ (Attn: J4/J3/TQMG) whenever there is a need to use their SPRS.

8) For control and monitoring purposes, withdrawals and use of

SPRS should be concerned by the operations and logistic staffs.

9) SPRS shall be replenished once the regular allocations of

units are delivered and/or POL used due to operational necessities has been allocated
by higher Headquarters.

10) Balance of augmentation POL at the end of the year shall

form part of SPRS of the Unified Commands and the Major Services.

11) Unified Commands and Major Services shall recommend the

establishment of new SPRS.

12) Unified Commands and the Major Services shall issue the
implementing guidelines on SPRS based on this directive.

7. PROCEDURES:

a. Requirement determination

1) POL requirement of units shall be determined based on the

following:
 a) Annual operating programs and budget of Major
Services
b) Operational priorities and thrusts
c) Area of operations
d) Consumption reports / data
e) TOE
f) Other essential data
2) POL requirement shall be submitted to and validated by
higher headquarters before inclusion in the Annual Procurement Program (APP).

3) Consolidated POL program shall be prepared by Major

Service logistics staff and submitted to GHQ (J4/TQMG).

b. Procurement

1) Major Services/TQMG (for GHQ/AFPWSSUs/UCs) shall

prepare respective Annual Procurement Plan (APP) for POL which shall be submitted to
the CSAFP (Attn: J4/TQMG).

2) Procurement of POL shall be within the approved program

only and within the GAA. Quarterly POL program shall be prepared and submitted by
the Major Services to GHQ (Attn: J4/The Quarter Master General (TQMG).

3) Major Services shall prepare the necessary POL purchase

order which shall be submitted to GHQ (TQMG).

c. Storage

1) Major Services/KBUs shall use existing storage facilities and

coordinate for other servicing stations in areas where organic storage facilities are not
available. Major Services/KBUs shall always ensure the safety of their POL storage
facilities.

2) Major Services/KBUs shall submit to GHQ (Attn: J4/TQMG)

the list of POL storage facilities being utilized.

d. Distribution/Issuance

1) Major Services shall ensure the timely delivery of POL

utilizing organic facilities and other authorized servicing stations.

2) All issuances and replenishment of SPRS shall be covered

by an Issuance Directive (ID) as approved by CSAFP (Attn: J4). In case of SPRS
managed by Unified Commands and Major Services Commanders (Attn: 4s).

3) Issuance of SPRS by the Unified Commands and Major

Services shall be relayed immediately by wire to CSAFP (Attn: J4/TQMG).

e. Utilization

1) Units shall allocate POL based on program. Priority is

operational use then administrative use.

2) Organic vehicles, authorized, air assets, and floating assets

shall be issued POL products.

3) Unit Commanders are accountable for the proper utilization

of POL.

4) A Schematic Diagram for the flow of request and support of

SOT POL is attached. (Annex A)
 f. Accounting/Auditing

1) Major Services/KBU’s shall inspect POL deliveries in terms

of quality and quantity and submit delivery reports to concerned offices.

2) Major Services/AFPWSSUs/UCs shall render quarterly and

annual consumption and inventory report.
3) Major Services/KBU Accountants shall account issuance
and audit POL fund utilization.

4) Major Services/KBU Accountants shall conduct reconciliation

of records with POL supplier twice a year.

7. RESPONSIBILITIES:

a. DCS for Operations, J3:

1) Provides operational guidelines in distribution of POL based

on established procedures set by J4.

2) Sets the priorities by unit with regard to replacement and

replenishments in accordance with the provisions of the current operations plan.

3) Prepares contingency procedures in coordination with J4 in

addressing unforeseen shortage in POL.

b. DCS for Logistics, J4:

1) Provides overall direction and supervision on the

management and utilization of regular POL, augmentation POL and SPRS.

2) Plans, determines and programs the POL contingency

reserves of the AFP.

3) Sees to it that appropriated funds programmed for POL are

utilized and released on time.

4) Insures adequate POL budget is available for replenishment

of SPRS.

5) Directs, coordinates, and controls the utilization and storage

of SPRS.

6) Approves SPRS issuances over and above the authorized

ceiling of Commander, Major Services and Unified Commands.

7) Conducts management audit of units on POL utilization, as

required.

c. DCS for Comptrollership, J6:

1) Ensures the availability of funds for POL purchases.

2) Implements strictly the liquidation system for POL funds.

3) Secures, controls, operates and maintains respective SPRS.

4) Recommends selective prepositioning of SPRS as situations

may require.
 9. RESCISSION:

All policies and directives in conflict with this SOP are hereby rescinded.

10. EFFECTIVITY:

This SOP takes effect upon publication.

BY COMMAND OF GENERAL ABAYA:

OFFICIAL: ARISTON V DELOS REYES

Vice Admiral AFP
The Deputy Chief of Staff

(ORIGINAL SIGNED)
CESAR L CARRANZA
Captain PN (GSC)
The Adjutant General