Israel resumes fuel supplies to Gaza

"Supplies have resumed. We have already received 1.5 million litres (330,000 gallons) at our depots this morning," Mujahid Salameh, head of the state-owned General Petroleum Corp (GPC) told AFP.

Dor-Alon, the main supplier of fuel to the Gaza Strip and occupied West Bank, had stopped supplies early Tuesday, on the grounds of an unpaid debt of 120 million shekels (27 million dollars).

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If post-dated Palestinian Authority cheques to Dor-Alon were added to the amount in arrears, the debt would climb to 88 million dollars, Salameh said.

"They promised to continue daily supplies in keeping with our needs, which are two million litres a day," he added.

Dor-Alon decided on Thursday to resume supplies after receiving assurances from Palestinian leader Mahmud Abbas that a first tranche of 132 million shekels (29 million dollars) would be paid in the next few days, said Salameh.

How the rest of the arrears will be paid will be decided during a meeting scheduled on Sunday between Palestinian officials and representatives of the Israeli company.