The Mindanao Federation of Transport Cooperatives (MFTC) is raising PHP500 million to lower fuel costs for its members, a move that could significantly reduce operational expenses for public utility vehicle (PUV) operators in the region.

In a statement Thursday, MFTC Chairman Melvin Erederos said the investment is part of the requirements for securing a contract with fuel suppliers in Subic, Zambales. The suppliers have agreed to sell fuel to the group for PHP40 per liter.

“Once we secure this contract, we can exclusively sell the fuel to transport cooperative members at PHP45 per liter,” Erederos said.

The MFTC represents 12 transport cooperatives across Mindanao and aims to serve as the marketing arm and exclusive distributor of the fuel supply.

“This will significantly ease the burden of high operational costs for our members,” Erederos added.

To achieve the investment target, Erederos said the group is working with government and private banking institutions to secure loans. He also serves as the president of the Bukidnon Multi-Purpose Cooperative. (PNA)