Creation of petrol company discussed by Palestinian Authority

In order to respond to the occupied West Bank’s ongoing fuel crisis, the Palestinian Authority is discussing setting up a petrol company Asharq Al-Awsat and agencies report on July 29^th.

Among the series of solutions proposed by Estaphan Salameh, the Palestinian Finance Minister was the idea of a public petrol company. When talking to reporters Salameh said “what is being proposed is a government-owned company that is fully owned by the state”.

At present, the regulation of the fuel industry and the purchase and transportation of fuel are all controlled by the Petroleum Authority. Oil in the West Bank is imported from Israel who have occupied the territory since 1967. Recently, Israeli authorities have refused to accept cash payments for fuel from the West Bank, fuelling the black market and smuggling of fuel. As there is no sovereign currency in the West Bank, companies lack the digital funds to buy fuel and resort to illegal smuggling.

Also, as tax revenues collected on behalf of the Palestinian Authority by Israeli authorities haven’t been given to the government in the West Bank, the financial crisis is only growing.

Samir Hullieh, a Palestinian businessman has blamed the Palestinian Authority’s financial troubles as the reason for the fuel crisis in the West Bank. He has said the money of the authority that is responsible for purchasing fuel” has been used for government expenditures.

Salameh also mentioned how the reformation of the Petroleum Authority had been discussed with leaders of Palestinian industry. He stressed that the creation of a public company to be in charge of transportation and purchase of fuel, future crises could be handled better by the government.

When discussing the proposal of a public petrol company, Hullieh said he didn’t think It would solve the fuel crisis as “the private sector rejected the idea, but there was no public discussion.”

Asharq Al-Awsat plus agencies, Maghrebi.org