In a strategic move to alleviate the financial strain on its members, the Mindanao Federation of Transport Cooperatives (MFTC) has announced plans to amass a PHP500 million fund aimed at reducing fuel expenses. This initiative, disclosed on January 23, 2025, in Cagayan de Oro City, is set to benefit public utility vehicle operators throughout the region by lowering their operational costs significantly.
MFTC Chairman Melvin Erederos revealed that the fund is crucial for clinching a deal with fuel suppliers based in Subic, Zambales. Under the proposed agreement, the federation would purchase fuel at a discounted rate of PHP40 per liter. Erederos emphasized that this arrangement would allow the MFTC to distribute fuel to its members at PHP45 per liter, a price point that promises substantial savings.
Representing 12 transport cooperatives across Mindanao, the MFTC is poised to act as both the marketing arm and the sole distributor of this fuel supply. Erederos expressed optimism that this initiative would greatly reduce the high operational costs faced by the federation’s members.
To reach their financial goal, the MFTC is collaborating with both government and private banks to secure the necessary loans. Erederos, who also holds the position of president at the Bukidnon Multi-Purpose Cooperative, is leading these efforts to ensure the success of this cost-saving venture.