Gaza official Raed Fattouh announced on Wednesday that Israeli fuel is being shipped to the Gaza Strip to power the Palestinian territory's only electricity station and ease a severe power shortage.
The announcement comes a day after a spokesman for Gaza's Hamas government, Taher Nunu, said Hamas would buy enough fuel daily to power the plant.
Fuel smuggled from Egypt used to be the main source of Gaza's energy. But Egypt cut off the flow two months ago. The fuel is for the power station and won't alleviate shortages that have idled vehicles across the territory. The fuel crisis, which left Gaza residents with power only six hours a day and disrupted transportation, stirred public criticism of Hamas.
Under the agreement reached on Tuesday, an Israeli company will supply industrial diesel for the Gaza plant and a temporary mechanism will be put in place whereby Hamas can pay the bill without dealing directly with its enemy Israel.
"The Hamas authorities in Gaza will pay the money ... to the PA [Palestinian Authority] and the PA will take care of the payment to the Israeli side," said an official, who asked not to be identified.