Israel cuts Gaza fuel in response to rocket fire

By Nidal al-Mughrabi

GAZA (Reuters) - Israel began reducing fuel supplies to the Gaza Strip on Sunday under new economic sanctions to punish the Hamas-controlled Palestinian enclave for rocket fire on Israeli towns.

"In line with the Israeli government's decision, the Defence Ministry will this week begin cutting fuel supplies to the Gaza Strip by between 5 and 11 percent, depending on the type of fuel," an Israeli security source said.

Palestinian officials had already complained on Sunday that deliveries of fuel oil for Gaza's power station, as well as diesel and petrol, were cut by between a quarter and a half.

There was no immediate obvious impact on electricity supply.

An official from the European Union, which funds fuel oil to Gaza's only electricity generating plant, said deliveries to the plant were down by about a quarter but it had stocks for some seven days of operation. Power demand tends to ease at this time of year, as air conditioning use decreases.

Israeli Prime Minister Ehud Olmert has said he will not allow a "humanitarian crisis". Officials say Israel will take care to ensure supplies for medical and other vital facilities in Gaza, which last month it declared to be an "enemy entity".

Hamas, the Islamist group whose violent seizure of control in the territory in June triggered a virtual closure of its borders, condemned Israel's "blackmail".

"The ... bid to strangle the Palestinian people will create an explosion that will blow up not only in the face of Hamas but affect the entire region," Hamas spokesman Fawzi Barhoum said.