KORONADAL CITY — The provincial government of South Cotabato has finalized a fuel supply agreement with a Malaysian company, in a move officials say is intended to augment supply and help ease fuel price pressures.

Governor Reynaldo Sucayan Tamayo Jr. announced Monday, April 20, that the supplier has issued an invoice, with the province now completing documentation required for the issuance of a Letter of Credit (LC)—a key step before shipments can begin.

Once finalized, deliveries are expected to follow, potentially boosting local fuel availability in the coming weeks.

The transaction, estimated to involve around 30 million liters of fuel, is valued in the billions of pesos, reflecting the scale of the procurement. Tamayo said the national government has authorized the provincial government to engage in such negotiations, allowing local officials to directly explore supply options amid fluctuating fuel prices.

The initiative is framed as part of broader efforts to support national measures addressing fuel supply constraints and price volatility. “As a local government, we are finding ways to augment supply and help accelerate the reduction of fuel prices,” Tamayo said.

Officials noted that the arrangement highlights increasing coordination between local governments and private sector partners. According to Tamayo, this collaboration allows for faster decision-making and implementation compared to traditional procurement processes.

However, while the agreement signals proactive intervention at the local level, details about pricing mechanisms, distribution plans, and how potential savings would be passed on to consumers have yet to be disclosed. It also remains unclear how the imported fuel will integrate with existing supply chains dominated by major industry players.

Energy analysts have previously cautioned that while increasing supply can help stabilize prices, global oil market dynamics, currency fluctuations, and logistical costs continue to significantly influence pump prices in the Philippines.

Still, provincial officials maintain that the deal could provide short-term relief and strengthen supply resilience, particularly in Mindanao, where fuel logistics can pose additional challenges.

Further updates are expected once the LC is issued and shipment schedules are confirmed.