Al-Sarahna: Demand for fuel decreased by 25% due to its increase

Bethlehem - Ofoq News - Despite the end of the supply shortage crisis and the stabilization of the quantities of fuel available in the Palestinian markets, gas stations are facing a worsening economic crisis, in light of the sharp rise in prices, the decline in citizens’ purchasing power, and the continued banking restrictions that threaten the ability of station owners to continue their work.

Secretary of the Gas Station Owners Syndicate in Palestine, Khaled Al-Sarahna, confirmed that the demand for fuel has declined by an estimated 25% since the beginning of this October, as a result of the significant increase in prices and the deterioration of economic conditions. He warned that the continued banking crisis and high operational costs are putting station owners before unprecedented challenges.

Al-Sarahna explained, during his speech on the program “Good Morning” presented by the journalist Riad Khamis, and broadcast on Radio 4, Ma’an Satellite, and Ma’an Radio Network, that the fuel supply shortage crisis, which lasted for about seven to eight months, has ended, indicating that supply operations have returned to normal since the tenth of last September, and stations have become able to obtain the full quantities they require without restrictions on supply.

He said that the availability of fuel did not reflect an improvement in the reality of the sector, as the crisis moved from a lack of supplies to rising prices and declining consumption, at a time when the Palestinian citizen faces increasing living pressures, which made the use of vehicles and daily transportation an additional financial burden on families.

Declining sales... Citizens reduce their mobility to face high prices

Al-Sarahna revealed that the demand for fuel decreased by up to 25% during the first days of this October, explaining that citizens are now avoiding unnecessary transportation, while some merchants were forced to reduce their trips to bring goods from other governorates, due to the high transportation costs.

He pointed out that the repercussions of high fuel prices are no longer limited to vehicle owners, but rather extend to various economic sectors, especially trade, agriculture, industry and transportation, in light of these sectors’ direct dependence on fuel.

He pointed out that the rise in transportation costs is reflected in the prices of goods and services, which increases the pressure on citizens who are already suffering from declining income and irregular salary disbursement.

The liquidity crisis threatens the continuity of the stations’ operation

On the other hand, Al-Sarahneh warned of the worsening banking crisis faced by gas station owners, stressing that the restrictions imposed on depositing the shekel currency in banks have become a serious obstacle to paying financial obligations and securing the needs of the stations.

He explained that the rise in fuel prices doubled the amount of liquidity needed to operate the station at the same level, saying that the station owner, who previously needed about 100,000 shekels to finance his purchases, now needs about 200,000 shekels to cover the same quantities.

He added that the problem is not limited to doubling the required capital, but also includes the difficulty of depositing cash in banks, which forces station owners to resort to money exchange shops and convert the shekel into other currencies, in exchange for additional financial losses that drain their profit margins.

Al-Sarahna described these losses as “fatal,” stressing that currency conversion costs may exceed the profits achieved by some stations, which threatens the economic viability of their continued operation.

He criticized the continuation of the crisis without practical solutions, calling on the relevant financial and banking authorities to address the restrictions imposed on depositing shekels, instead of making station owners bear the consequences of a crisis that they do not have the ability to resolve.

Unreasonable prices and pressures that exceed the capabilities of citizens

Al-Sarahna described the current fuel prices as “completely unreasonable,” noting that the Palestinian citizen bears burdens that exceed his purchasing power, in light of the decline in economic activity and the high cost of living.

He explained that the rise in prices is linked to several factors, including insurance and transportation costs, regional developments, in addition to taxes imposed on fuel, stressing that these factors together contributed to increasing the burdens on consumers and station owners.

He pointed out that the rise in diesel prices in particular led to an increase in the costs of operating vehicles and activities relying on it, after it was previously seen as a less expensive option than gasoline.

He cited the rise in fees for transporting students to schools, explaining that the fee, which was three shekels, rose in some cases to five shekels, in an example that reflects the transfer of the impact of the rise in fuel to the details of daily life.

Will prices decrease in the coming months?

Regarding the possibility of a decline in fuel prices during the coming period, Al-Sarahna linked any potential decline to political and economic developments in the region, especially the situation in the Arabian Gulf and relations between the United States and Iran.

He explained that achieving regional political stability may contribute to a decline in prices, while continued tensions may lead to continued pressure on energy markets, stressing that the future of prices remains dependent on developments that are difficult to predict at the present time.

The fuel sector faces a difficult test

Al-Sarahneh's statements reflect the magnitude of the challenges facing the Palestinian fuel sector, as the availability of fuel at stations is no longer sufficient to ensure market stability, in light of the decline in demand, the erosion of profits, the rise in financing needs, and the continuing banking liquidity crisis.

Between stations that own fuel but face difficulty in financing their purchases, and citizens who find themselves forced to reduce their movements to reduce financial burdens, the repercussions of the fuel crisis are expanding to affect various aspects of the Palestinian economy.