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Dor Alon to continue fuel supply to Gaza
Race to supply fuel to Palestinain Authority ends in draw: Paz to begin supplying fuel to West Bank; Dor Alon to supply fuel to Gaza Strip
Palestinian Minister of Energy Samir Abu Issa has told the Paz energy company Sunday that he wishes to continue doing business with Dor Alon who will continue to supply fuel to the Gaza Strip.
Paz accepted the request of the Palestinian Authority and agreed to downsize the contract between them and to supply fuel for the West Bank only.
Presently, Dor Alon is the exclusive supplier of fuel to the Palestinian Authority and according to estimates, this contract constitutes one-third of its income.
Recently the PA signed an exclusive contract with Paz, effectively removing the supply from Dor Alon starting January 1, 2007.
The contract with Paz was signed after the PA had decided to stop working with Dor Alon when the PA approached the company asking them for greater flexibility regarding payments and for a reduction in prices due to their harsh economic situation, but Dor Alon refused.
Over the past three months a feverish negotiation process has been taking place between the PA and both companies, who both wanted to receive the lucrative monopoly for them, despite the fact that the PA has a dismal record of payments and is in constant debt.
Since the economic crisis, which hit the Palestinian Authority with the rise of Hamas to power, there were at least three occasions where Dor Alon suspended its supply of fuel to the PA because of debt of hundreds of millions of shekels.
However, because of European assistance, the PA was able to pay off its debt and the supply was renewed after a few days.
