TAGUM CITY, Davao del Norte — The provincial government of Davao del Norte is moving to secure a massive 44 million liters of diesel from Malaysia in a bid to cushion the province against looming fuel shortages and surging oil prices triggered by ongoing tensions in the Middle East.
Governor Edwin Jubahib confirmed on March 25 that negotiations are underway with Petronas for the proposed fuel importation, describing the move as a proactive response to uncertainties in the global petroleum market.
The governor made the disclosure on the sidelines of a press conference in Tagum City during the turnover of assets involving Davao Light and NORDECO, noting that while discussions are progressing, key details of the agreement have yet to be finalized.
Proactive Response to Global Oil Instability
Jubahib said the initiative aims to stabilize fuel supply in the province as international developments continue to disrupt oil production and distribution. He pointed to escalating tensions in the Middle East as a major factor driving volatility in global fuel prices, which he said have nearly doubled in recent months.
Local officials have expressed concern that these disruptions could soon translate into supply shortages at the domestic level, prompting the provincial government to explore alternative sourcing strategies outside the country’s traditional supply chains.
“This is about ensuring that Davao del Norte remains prepared,” Jubahib said, emphasizing the need for local governments to adopt more independent approaches to energy security.
National Supply Concerns Add Urgency
The urgency of the plan is underscored by data from the Department of Energy, which earlier disclosed that the country’s gasoline reserves may only last about 50 days, while crude oil supply could run out in approximately 45 days if replenishment issues persist.
These projections have heightened concerns among local governments, particularly in fast-growing provinces like Davao del Norte, where fuel demand continues to rise due to expanding economic activity.
Multi-Pronged Strategy to Prevent Crisis
Beyond the planned importation, the provincial government has rolled out a series of measures to mitigate the impact of potential fuel shortages and prevent price manipulation.
A multi-agency task force composed of the Philippine National Police, Armed Forces of the Philippines, Department of Trade and Industry, Department of Energy, and prosecutors has been mobilized to conduct inspections of gasoline stations across the province. The move aims to curb hoarding and prevent unjustified price increases.
To further conserve fuel, the provincial capitol has implemented a carpooling system among government employees, reducing daily fuel consumption. Jubahib also ordered the extended use of government vehicles—including ambulances, fire trucks, heavy equipment, and dump trucks—for an additional year to maximize resources.
Stockpiling and Logistics Preparedness
As part of its contingency planning, the provincial government has prepared two large fuel tankers with a combined capacity of 24,000 liters to serve as emergency reserves in case of supply disruptions.
The governor said the imported diesel, once secured, is intended to support local government units, government offices, and private businesses, ensuring that essential services and economic activities remain uninterrupted.
Toward Energy Resilience
The proposed deal with Petronas signals a shift toward localized solutions to global challenges, as Davao del Norte positions itself to reduce vulnerability to external shocks.
While negotiations remain ongoing, the provincial government’s aggressive approach reflects growing concern over energy security and the need for immediate, decisive action.
“We cannot wait for a crisis to happen before we act,” Jubahib said. “This is about protecting our people and sustaining our economy.”