Fayyad, speaking Sunday in Ramallah, said the boycott should apply to all Israeli products, the Ma'an News Agency reported.
Fayyad also called for an urgent Arab summit to address the issue, saying the Palestinian Authority requires $240 million each month. He called on the Arab world to fulfill promises and provide the P.A. with $100 million in aid each month, Ma'an reported.
Mohammed Sbeih, the assistant secretary-general of Palestinian Affairs in the Arab League, told Ma'an communications with Arab states was under way to ensure they provide the promised cash.
Last week, Israeli Foreign Minister Avigdor Lieberman said Israel won't transfer tax revenues to the P.A. for four months, and will withhold funds to pay debts incurred by the Palestinians on electricity and water bills and other services to Israeli companies. He said money for salaries was paid to the Palestinians in advance.
Lieberman resigned his post Friday, saying he would concentrate his energies on fighting breach of trust charges for allegedly promoting the career of a former ambassador to Belarus.
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