November 2024

Business Development Allowance Export (BDA-X)

The Business Development Allowance Export (BDA-X) program offers a simple and effective way to offset a variety of your business development expenditures by enabling you to earn dollars to spend toward growing your business by supporting the Phillips 66® Lubricants brands. For more information, visit Lubestream > Programs > Business Development Allowance Export.

HOW IT WORKS

  • As a Marketer, you will earn funds on every gallon of qualified Phillips 66, Kendall® and Red Line®-branded lubricants that you purchase between January 1, 2025 and December 31, 2025
  • These BDA-X funds will be accrued monthly and posted to your BDA-X account one month in arrears.
  • Marketers carrying two or more Phillips 66 Lubricants brands will have BDA-X funds combined into a single account, allowing the flexibility to spend BDA-X funds to support any of the Phillips 66 Lubricants brands.
  • For more information, visit Lubestream > Programs > Business Development Allowance Export.

ACCRUAL RATES FOR THE 2025 BDA-X PROGRAM

BDA-X RATE TABLE
TierCategoryKendall RatePhillips 66 RateRed Line Rate
Tier 1PCMO
Full Synthetic
$0.45$0.45N/A
Tier 2PCMO Synthetic Blend, HDEO Full Synthetic, and HDEO Synthetic Blend$0.26$0.12N/A
Tier 3Everything Else$0.26$0.12N/A
AviationAviationN/A$0.35N/A
Red LineRed Line OilN/AN/A$0.45

ELIGIBILITY

  • Open to Phillips 66 Lubricants Marketers residing outside of the United States and Canada with a Marketing Plan in place.
  • A Marketer must purchase a minimum combined Phillips 66 Lubricants volume of 150,000 gallons in calendar year 2025 to be eligible for the BDA-X program.
  • If your 2024 year-end combined Phillips 66 Lubricants volume exceeds 150,000 gallons, you are prequalified to participate in the BDA program January 1, 2025.
  • If your 2025 year-end combined Phillips 66 Lubricants volume exceeds 150,000 gallons, you are prequalified to participate in the BDA program January 1, 2026.
  • You must be a Phillips 66 Lubricants Marketer in good standing.
  • Phillips 66 Lubricants reserves the right to determine overall eligibility in this program and BDA-X funds will be suspended if Marketer volume decreases 80% year over year.

QUALIFIED PRODUCTS

  • Any qualified Phillips 66, Kendall and Red Line-branded product (bulk or packaged) which you have purchased, excluding the ineligible products listed next.

INELIGIBLE PRODUCTS

  • Phillips 66 Coolants
  • Red Line Service Chemical
  • Buyback Business purchases
  • Branded antifreeze and MileGuardTM Filters
  • Unbranded products, private label, Point® brand
  • Any product that is identified as ineligible by Phillips 66 Lubricants

PAYMENT OF BDA-X FUNDS

  • Marketers will receive payment via credit memo only.
  • Claims will be system-generated on a quarterly basis on the 25th of April, July, October 2025 and January 2026, limited by total BDA-X accrual.
  • Claims need to be approved by your Phillips 66 Account Manager in the system before being paid.
  • BDA-X payouts will be suspended or delayed should eligible volume decrease by 80% year over year.

BUSINESS DEVELOPMENT ALLOWANCE EXPORT GROWTH ACCELERATOR

HOW IT WORKS

  • The BDA-X Growth Accelerator qualifying volume is  based on combined Phillips 66 Lubricants-branded net  2025 purchases.
  • The program is designed to reward you for bringing on incremental volume above your established base volume.
  • Your base volume is the greater of your net qualified  gallons from the previous two years (newly signed  Marketers with partial prior-year purchases will have their  previous-year base volume annualized).
  • The program rewards 2025 incremental volume once  your purchases exceed 103% of your established base  volume.
  • Once you have reached your 103% growth threshold,  you will be rewarded on all growth gallons.
  • All acquired and merged volume from other  Phillips 66 Lubricants Marketers is ineligible.
  • For more information, visit Lubestream > Programs >  Business Development Allowance or Lubestream >  Programs > Business Development Allowance Export.

PRODUCT QUALIFICATION

  • Qualified Phillips 66, Kendall and Red Line branded products include any product (bulk or packaged) that you have purchased, excluding the ineligible products listed below.

INELIGIBLE PRODUCTS

  • Phillips 66 Coolants
  • Red Line Service Chemicals
  • Buyback Business purchases
  • Unbranded products, private label, Point brand
  • Branded antifreeze and MileGuard filters
  • Any branded product that is identified as being ineligible by Phillips 66 Lubricants

PAYMENT OF BDA-X GROWTH ACCELERATOR

  • BDA-X Growth Accelerator funding is calculated by Phillips 66 Lubricants after all year-end transactions have closed.
  • BDA-X Growth Accelerator funds will be deposited as a credit memo to your account by March 1, 2026.

2025 BDA-X GROWTH ACCELERATOR  RATE SCHEDULE

2025 GROWTH  GALLONSGROWTH BDA-X RATES
3% to 9.99%$0.50/gallon
10% to 19.99%$0.75/gallon
20% +$1.00/gallon
NOTE: Payment is retroactive to gallon one of growth only when  the qualifying threshold has been met or exceeded.

ELIGIBILITY

In order to be eligible, all Marketers must meet the following criteria:

  • Exceed the the minimum BDA-X threshold of 150,000 combined  Phillips 66 Lubricants gallons within the 2025  calendar year.
  • Have combined 2025 Phillips 66 Lubricants-branded  net purchases that exceed 103% of the Marketer’s  base volume.
  • Have purchases from Phillips 66 Lubricants in the  previous year to establish base volume.
  • Be in good standing with Phillips 66 Lubricants.
  • Have a current executed Branded Lubricants Product  Purchasing Agreement
  • First-year marketers, please see your Account Manager for eligibility requirements. Phillips 66  Lubricants reserves the right to limit BDA-X Growth payment(s)  based on nonconformance with the Marketer’s PPA and other  related documents, monies owed to Phillips 66 Lubricants by the Marketer, or 2026 budget constraints. This program is  subject to change or cancellation without notice.

Related Posts

Business Development Allowance
November 13, 2024