Supplier Cuts City’s Fuel Supply

The private fuel supplier of the Cebu City government had stopped delivering petroleum products since last Monday because the city government fails to settle its obligation amounting to P1 million.

With this disruption, the General Service Office (GSO) had prioritized the garbage trucks so that the collection of wastes will not be affected.

“Nahakot man g’yud ang tanang basura,” said Engr. Rolando Ardoza, head of the Department of Public Services (DPS).

City Administrator Lucelle Mercado reportedly got mad after she learned that the supplier, Phoenix Petroleum Philippines Inc.,(Phoenix) had abruptly ceased delivering diesel and gasoline fuel to the city since last Monday.

Phoenix and the Cebu City government has an existing P105.3-million contract where the fuel supplier is supposed to deliver 200,000 liters of diesel and 45,000 liters of unleaded gasoline every month for one-year.

City Treasurer Diwa Cuevas said there is no pending transaction for check issuance at her office, saying “pahimoan man dayon nako og tseke basta fuel kay priority man g’yud ang utilities like power and water.”

Cuevas believed that transactions for payment of fuel consumption incurred by the 1,182 various city vehicles, might be delayed for review in other offices, like in accounting or at the GSO.

The city has 157 heavy equipment, 227 motorcycles, and 257 other kinds of vehicles.

With the scarce supply of fuel, the heavy equipment of the Department of Engineering and Public Works (DEPW) were affected and had to stop its projects like the asphalting and widening of roads.

To temporarily solve the problem, the city had to make an emergency purchase of diesel and unleaded gasoline from Autogas.

The city administrator said that because of the disruption of the fuel supply, she will recommend that the city’s contract with Phoenix be rescinded.