(UPI) -- The Palestinian Authority will not renew its fuel and natural gas contract with its Israeli supplier in 2007 -- leaving the Palestinians three months to find another fuel source amid an already-tenuous energy situation in the territories.| They just keep digging, don't they. |
Meanwhile, according to the company`s latest financial information, 40 percent of Dor Alon`s $1.9 billion in revenues come from the PA. The loss of the deal with the PA will be a major blow to the company, which informed the Tel Aviv Stock Exchange of the news during the Yom Kippur holiday break on Monday.
'The Palestinian Authority came to the company requesting an improvement in the conditions ... for fuel and gas that (the authority) purchases from the company. Dor Alon did not agree to this request, and as such, the PA informed the company that starting at the beginning of 2007, it does not intend to continue purchasing fuel and gas from the company,' Dor Alon told United Press International through a spokesman.
At least three times since [Hamas came to power], PA checks to Dor Alon in payment for fuel have bounced. In May, the PA missed a $7.8 million payment, after which Dor Alon temporarily halted supply. In March, the company cut the PA`s fuel supply after a $23 million check bounced, and resumed delivery after an EU money transfer to the PA.
According to reports published at the time, West Bank gas stations reported shortages of diesel fuel and gasoline each time Dor Alon pulled the plug on supplies, and long lines formed as Palestinians tried to stock up.
| This didn't generate the usual clue ... |
| Maybe Hugo will open Citgo stations throughout Gaza. |
'After Gaza`s power station was destroyed the budget of about $50 million (that had been supplying fuel to the power station) was diverted toward providing fuel for generators across the Gaza Strip,' Al-Ahram report said. 'Between 200,000 and 300,000 liters of fuel are distributed to more than 200 delivery points in Gaza every week in a program overseen by PriceWaterhouseCooper,' the report said. The newspaper estimated that Gaza holds less than two weeks` worth of fuel in reserves.
| They can still afford ammo, though. |
However, last week the Israeli Ministry of National Infrastructures announced that it had approved cross-border power lines between Jordan and the West Bank city of Jericho, to supplement the East Jerusalem Electric Company with Jordanian electricity. While this solution does not address the territories` need for fuel, it may ease the electricity crunch there.