THE Provincial Government of Davao del Norte is moving to secure its fuel supply through a proposed multibillion-peso import deal with Malaysia, as global uncertainties threaten petroleum availability and price stability.
Governor Edwin Jubahib said Wednesday, March 25, 2026, that the province is negotiating to import 44 million liters of diesel and gasoline, calling the move a proactive response to possible shortages linked to escalating tensions in the Middle East.
He made the announcement on the sidelines of a press conference in Tagum City on the takeover of Northern Davao Electric Cooperative assets by Davao Light and Power Company.
Jubahib said initial talks are underway with a Malaysia-based supplier affiliated with Petroliam Nasional Berhad (Petronas), one of Southeast Asia’s largest petroleum firms. Malaysian authorities facilitated the discussions, citing concerns over a possible global supply crunch.
“Dili ta pwede moundang ug serbisyo tungod kay wala nay fuel (We cannot afford to stop services just because we run out of fuel),” Jubahib said.
He said a steady fuel supply is critical to sustain government operations, especially emergency services such as ambulances, fire trucks, rescue vehicles, and heavy equipment used in disaster response and infrastructure work.
“Mao nga misulong ta og direct purchase gikan sa Malaysia aron masiguro nga mopadayon ang atong mga sakyanan, operasyon, ug ang kalihokan sa tibuok probinsya (That is why we initiated direct talks with Malaysia—to ensure our vehicles, operations, and the entire province keep running),” he added.
Proposed supply and buffer
The province plans a single shipment of 44 million liters to cover immediate needs and build a strategic reserve that could last up to one year.
Initial estimates place the cost at ₱40 to ₱45 per liter, subject to negotiations as global oil prices remain volatile.
Jubahib said Malaysian counterparts signaled readiness to supply the volume. The province is also preparing storage facilities, including a local depot for bulk reserves.
Financing and logistics
The provincial government is coordinating with the Development Bank of the Philippines for possible financing.
It is also exploring private sector participation, with local fuel distributors and major businesses potentially helping fund the purchase.
For logistics, the province has acquired two fuel tankers with a capacity of 24,000 liters each.
“These were emergency purchases so that while we source diesel, we already have transport capacity,” Jubahib said.
Conservation measures
The Capitol has begun fuel-saving measures, including carpooling and limiting vehicle use for official travel.
“We will reduce vehicle utilization in the Capitol so we can preserve diesel and gasoline,” Jubahib said.
No-profit distribution plan
If the deal proceeds, the province plans to distribute fuel without markup to government offices and private businesses.
“Dili ni siya negosyo. Ibaligya ni nato at the same price sa atong pagkuha This is not a business. (We will sell it at the same price we bought it),” Jubahib said.
He said the goal is to keep businesses running and protect jobs.
“If companies shut down, people will lose jobs—and that’s what we want to avoid,” he added.
Economic stakes
The push comes as Davao del Norte sustains economic growth.
Data from the Philippine Statistics Authority show the province grew 6.2 percent in 2024, driven by construction, manufacturing, and agriculture in Tagum and Panabo.
Key agricultural products include banana, coconut, and rice. The province generated nearly ₱3 billion in local revenue in 2025, reflecting strong business activity.
Officials warn that fuel supply disruptions could undermine these gains.
Legal constraints
Legal experts note that fuel importation is regulated by national law.
Under the 1987 Constitution, local governments have autonomy but remain subject to national statutes and presidential supervision. The Department of Energy oversees fuel importation and downstream oil regulation.
Procurement must comply with Republic Act No. 9184 and Republic Act No. 12009, which require competitive bidding and transparency.
While Republic Act No. 8479 allows fuel importation, entities must meet national regulatory requirements.
The Supreme Court of the Philippines has ruled that local governments cannot override national law, including in cases such as Magtajas v. Pryce Properties Corp., Batangas CATV v. Court of Appeals, and Social Justice Society v. Atienza.
There is no legal precedent allowing a province to independently import fuel outside national regulation.
Negotiations ongoing
Jubahib said negotiations are ongoing and the Department of Energy has been informed. The province considers the plan part of its emergency preparedness strategy.
Details on pricing, delivery, and financing are expected in the coming weeks.
“This is for Davao del Norte,” he said. “We are doing everything we can to make sure no service stops and no family suffers because of a fuel shortage.” DEF WITH REPORTS FROM MARCELINO F. MARANE II, DORSU INTERN