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Firm cuts PA gas supply over upnaid debts

TEL AVIV, Israel, Oct. 11 (UPI) -- Citing unpaid debts, Israeli energy company Dor Alon cut the Palestinian Authority's fuel supply on Tuesday for the fifth time since Hamas took power there.

While fuel is still flowing to the West Bank and Gaza, PA officials report that Dor Alon is making only the minimum delivery, "effectively cutting off regular fuel supplies," according to a report in the Israeli business magazine TheMarker.

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The PA owes Dor Alon almost $59 million, the report said.

Unpaid bills and bounced checks were the reason Dor Alon cut the fuel supply in the territories on the previous occasions, as well. The first time, the company resumed deliveries after the PA received an aid grant from the European Union.

Last week, PA officials told Dor Alon -- the Palestinians' only fuel supplier -- they were not interested in buying from the company after the end of 2006. A day later, the PA signed a supply deal with Israel's largest energy company, Paz.

The PA was Dor Alon's biggest customer, accounting for nearly half of the company's revenues.

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