Mujahed Salameh, head of the Palestinian Fuel Agency, told Reuters on Thursday that the deal had been reached after Palestinian Chairman Mahmoud Abbas sent a letter guaranteeing to send funds within 10 days.
"Dor will resume fuel supplies tomorrow to the Palestinian areas," Salameh said, referring to the Gaza Strip and the West Bank.
Dor Alon had cut off petrol to the Palestinian areas two days ago, emptying petrol stations of their supplies.
Following fuel shortages, many Palestinian motorists, most of them taxi drivers flocked to the Israeli gas station near Kiryat Arba. Palestinians are not allowed to enter Israeli territory, but soldiers and police officers allowed the drivers to reach the gas station. The station usually serves settlers in the area, and a long line of taxis formed in the area.
Mahmoud Hazandar, chairman of the Union of Fuel Distributors in the Palestinian territories, said yesterday that the PA did not receive fuel form Israel since the start of the month, and added that he believed that a single day's fuel remained. Without a supply of gas, he said, the PA could reach a situation of "total shutdown." The PA fears that the shortage in fuel and gas could also harm industrial activities and electric supplies.
Reuters contributed to this report