Calculation of I0
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ALCON,Following are the explanations of the questions requested in the email.Determination of I0∙ If you review the signed contract between the parties on page 37 of contract, in 2nd last line I0 is described in following words;o “…Platts five days rolling average on the date seven days prior to the date of opening of the bid…”∙ As we all know the Bid opening date was 16th February 2015, so Seven (7) days prior to bidopening becomes 9th February 2015.∙ Further as per GCC 15.1 sub clause (iii), it is clearly mentioned that Platts Five days rolling average price (Jet Kerosene FOB Med C/gallon) given in Platts Oilgram Price report on the date prior to seven days opening of bid.
The following table has been extracted from Platts Oilgram Price Report (page 27). Using the data on the report;I0=(171.75+171.90)/2=171.8250[pic 1]Note: – For your record Complete copy Platts Oilgram Price Report for 9th Feb 2015 is also attached. The page you need to focus is 27.Conversion from Metric Tons to LittersConversion depends on density. The formula used for conversion is a standard one and is as follows;Litters = (MT/Density) * 1000Note: Change in temperature leads to variation in density. If temperature is high then density will be high, if temperature is low then density will be low. 0.82 is the average density of Jet A-1. So using the average to calculate;