Palestinians fleeing Gaza chaos
Photo: AP
Israel halts fuel supply to Gaza
Gaza chaos leads Dor Alon energy company to discontinue sale of gas to most of Strip, excluding Gaza's power plant. Fuel in Strip expected to run out within a few days; Dor Alon to lose some $120 million
Israeli energy company Dor Alon has halted fuel supply to Gaza, in coordination with the IDF, and following Hamas' takeover of the Strip.
If fuel supply is not resumed within two-three days, all Gaza gas stations will be left without any fuel whatsoever.
Dor Alon will continue to supply fuel only to the Gaza power plant, in coordination with the IDF. The power plant receives about one third of the fuel supplied to the Strip.
In the meantime, supply of electricity to the Strip will also continue.
Up until some six months ago, Dor Alon was the sole supplier of fuel to the Palestinian Authority. At the start of last year, however, the Paz energy company began supplying fuel to the West Bank.
The PA initially planned to transfer all fuel purchase to Paz, but after a tight competition between the two companies, the PA decided to continue purchasing fuel from Dor Alon for the Gaza Strip alone.
In the first nine months of 2006, Dor Alon sold some $412 million worth of gas to the PA.
The company has halted sale to the Palestinian Territories a number of times in the past, due to the political situation and the PA's debts, which were eventually paid off by the European Union.
According to estimates, the Gaza Strip made up about one third of the company's sales to the PA, meaning Dor Alon is expected to lose some $120 million per year after ending sale to the Strip.
