Energy company halts PA fuel supply
Dor-Alon curbs fuel deliveries to Palestinians for second time in two months; fuel shortages expected in a week unless deliveries resume
The Dor-Alon energy company has halted fuel supply to gas stations in the Palestinian Authority, energy sources said Sunday.
The company serves as a monopoly that supplies almost all Palestinian gas stations and gas companies with fuel. Dor-Alon's annual sales reach NIS 1.5 billion (About USD 320 million).
The company discontinued the supply on Saturday in light of a Palestinian debt to the tune of tens of millions of shekels.
The latest decision marks the second time in two months that the Dor-Alon stopped the supply to the PA. The first time was back in February when supply was halted for four days after a PA check for NIS 100 million (about USD 22 million) bounced. Dor-Alon resumed the delivery of fuel only after emergency aid was funneled to the PA by the European Union.
Energy officials believe that Dor-Alon decided to adopt a tough approach in its dealings with the PA after the United States and European Union officially announced they are suspending aid to the PA, and also after Israel decided to hold back the transfer of tax revenues to the PA.
The PA market constitutes about one third of Dor-Alon's business revenues and if oil supply to the PA will not resume within a few days the action is expected to hurt the company's business. Moreover, should the fuel supply not be resumed, the PA will experience fuel shortages in one week.
Meanwhile, Dor-Alon declined comment on the report.
