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Davao Del Norte Exec Bares Plan To Buy Oil From Neighboring Malaysia

The move underscores local government efforts to respond to global supply disruptions affecting fuel costs.

Davao Del Norte Exec Bares Plan To Buy Oil From Neighboring Malaysia

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The provincial government of Davao del Norte plans to buy 44 million liters of crude oil and gasoline from Malaysia to help mitigate rising oil prices in the province caused by the ongoing conflict in the Middle East.

Gov. Edwin Jubahib said in an interview on Wednesday that while the purchase cost has yet to be finalized, he is optimistic that the Malaysian government will provide the supply.

“I connected with the Johol District in Negeri Sembilan, Malaysia, and shared our problem. Since they have a huge reserve of crude oil and gasoline, they responded positively and said we can buy some of it,” Jubahib said.

He disclosed that the oil will be sourced from Petronas, Malaysia’s national petroleum company.

“The liaison of the ruler of Johol is in the provincial capitol right now, and we will meet today to discuss the cost and delivery,” he added.

The governor said the 44 million liters will be a one-time shipment, assuring that the province has the capacity to pay for such a bulk order.

“We will ensure the amount is provided so we can stabilize supply in the province,” he said.

Negotiations are ongoing, and the provincial government is expected to adhere to Malaysia’s procurement process.

Jubahib added that they are still identifying a depot to store the supply once the deal is approved.

“I will inform the Department of Energy about this local initiative. We are doing this to sustain services for the Dabaonons,” he said.

To conserve fuel, the provincial government has also implemented a carpooling system.

He further revealed that the province had made an emergency purchase of two large tankers, each with a 24,000-liter capacity.

“This is necessary, especially for our rescue vehicles. If a shortage occurs, at least we have reserves for emergencies,” he said. (PNA)