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Friday, March 02, 2012

Hamas accuses Egypt of reneging on fuel deal

Hamas and Egypt are still arguing over the short-term procurement of fuel for Gaza's power plant.

According to Hamas media, Egypt is insisting that Hamas pay $1.00 per liter of diesel for the power plant, and Hamas is balking at paying a half million dollars a day for fuel.

Egypt heavily subsidizes its own fuel prices - the latest numbers I could find were about 50 cents a liter from last autumn - and does not appear to want to charge Hamas any less than it pays itself.

Ismail Haniyeh today said that there were unnamed "parties" who were determined to keep Gaza in the dark.

Egypt's ambassador to Ramallah blamed "technical issues" for the snafu.

It is increasingly clear that the option of Egypt transferring fuel through Kerem Shalom is off the table because of Hamas' refusal.

Meanwhile, Gazans are suffering because of a cold snap and snow that fell last night.