THE Cebu City government has officially canceled its contract with a private fuel supplier after the latter stopped delivering fuel without prior notice.
Cebu City Mayor Michael Rama has signed the cancellation of the contract with Phoenix Petroleum last Thursday.
City Administrator Lucelle Mercado said the supplier, Phoenix Petroleum Philippines Inc., immediately suspended delivery of diesel fuel and unleaded gasoline to the City Hall.
For the meantime, the city government will continue with emergency purchases from Autogas. Mercado said it will take more or less one month before they will be able to complete bidding procedure for a new supplier.
However, Phoenix Petroleum won’t be barred from joining the bidding.
The City Hall still owes the supplier P29 million.