Petronas Issues Formal Denial of Involvement in Philippine Diesel Import Plan
Malaysia's state-owned energy giant Petronas has officially denied any participation in a proposed diesel import arrangement with the Davao del Norte provincial government in the Philippines. The company issued a clarifying statement on March 29, 2026, directly contradicting earlier claims made by provincial officials regarding negotiations for 44 million liters of diesel fuel.
Contradictory Claims Emerge Regarding Fuel Supply Negotiations
In a strongly worded corporate statement, Petronas declared: "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 energy firm emphasized its current focus remains on maintaining stable fuel distribution within Malaysia through established networks and government coordination.
This denial directly challenges statements made by Davao del Norte Governor Edwin Jubahib, who told reporters during a March 25 press briefing in Tagum City that the province was exploring fuel importation options as a precaution against potential Middle East-related supply disruptions. Jubahib specifically mentioned ongoing discussions with what he described as "a Malaysia-based supplier affiliated with Petronas," though he provided no specific timeline for the proposed transaction.
Governor's Claims Include Royal Connections and Preliminary Approvals
Governor Jubahib made several notable assertions during his press conference, claiming the initiative was facilitated through connections with Malaysia's monarchy. Speaking in a mix of English and Cebuano, he stated: "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)." He added that pricing negotiations would be part of ongoing discussions.
The governor justified the proposed diesel import plan by citing global market volatility and the province's need for reliable fuel supplies. "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)," Jubahib emphasized, highlighting concerns about potential service disruptions affecting provincial operations.
Petronas' Philippine Business History and Legal Considerations
Petronas has maintained limited engagement in the Philippine market through private-sector partnerships rather than direct government transactions. In March 2023, the company signed a memorandum of understanding with Phoenix Petroleum Philippines Inc. to explore cooperation in several areas including:
- Fuel retail operations and distribution networks
- Supply chain optimization and logistics improvements
- Technology-driven services and digital innovations
This partnership approach represents a strategic shift for Petronas, which exited direct retail operations in the Philippines in 2017 after divesting its liquefied petroleum gas business to Phoenix Petroleum. The company has since pursued a more commercially focused, partnership-based business model in the region.
The proposed diesel import plan raises significant legal considerations under Philippine regulations. Fuel importation and downstream oil activities fall under the jurisdiction of the Department of Energy and must comply with several key laws:
- Republic Act No. 9184 (Government Procurement Reform Act)
- Republic Act No. 12009 (Downstream Oil Industry Deregulation Act)
These regulations mandate transparency requirements and competitive bidding processes for government procurement. Additionally, Supreme Court rulings have established that local government units cannot override national laws, creating potential limitations on provincial authority to enter large-scale international supply agreements without proper national-level approvals and compliance with established procurement procedures.
Following Petronas' public denial, SunStar Davao attempted to contact Governor Jubahib for additional comments but had not received a response at the time of reporting. The conflicting statements create uncertainty about the actual status of diesel import negotiations between Davao del Norte province and Malaysian energy suppliers.
