PETROLIAM Nasional Berhad (Petronas), Malaysia’s state-owned energy firm, has denied involvement in a proposed plan by the Davao del Norte provincial government to purchase 44 million liters of diesel.
In a statement issued March 29, 2026, Petronas said it is not part of any such transaction.
“Petronas wishes to clarify that it is not aware of, nor involved in, any such arrangement, and has not entered into any related agreement or commitment,” the company said.
The firm added that it remains focused on ensuring a stable and reliable fuel supply within Malaysia through established networks and coordination with the government.
The clarification followed remarks by Davao del Norte Governor Edwin Jubahib, who earlier said the province was exploring fuel importation as a precaution against potential supply disruptions linked to tensions in the Middle East.
Speaking at a press briefing in Tagum City on March 25, Jubahib said talks were ongoing with a Malaysia-based supplier affiliated with Petronas, although he did not provide a timeline.
He also claimed the initiative was facilitated through connections with Malaysia’s monarchy.
“Wala nagdili o nisugot sa atoang hangyo na mu-purchase og diesel gikan sa Malaysia from Petronas… naa namay authority gihatag (They did not refuse or reject our request to purchase diesel from Malaysia through Petronas… authority has already been granted),” Jubahib said, adding that discussions would include pricing negotiations.
The governor said the proposed deal aims to secure a stable fuel supply amid global volatility.
“Dili ta pwede muundang ug serbisyo tungod kay wala nay fuel (We cannot afford to stop our services just because there is no more fuel),” he said.
Petronas’ statement, however, underscores that no agreement or formal engagement exists.
SunStar Davao sought comment from Jubahib following the company’s clarification, but has yet to receive a response.
Petronas’ past engagements in the Philippines have largely been limited to private-sector partnerships. In March 2023, it signed a memorandum of understanding with Phoenix Petroleum Philippines Inc. to explore cooperation in fuel retail, supply chain optimization, and technology-driven services.
The company had earlier exited its direct retail operations in the Philippines in 2017 after divesting its liquefied petroleum gas business to Phoenix Petroleum, shifting toward a more commercially driven, partnership-based approach.
Under Philippine law, fuel importation and downstream oil activities fall under the regulation of the Department of Energy and must comply with procurement laws, including Republic Act No. 9184 and Republic Act No. 12009, which require transparency and competitive bidding.
The Supreme Court has also ruled that local government units cannot override national laws, reinforcing limits on provincial authority in entering large-scale or international supply agreements. DEF