Gas traders in Gaza half gas imports from Egypt as Hamas imposes more taxes

Gas traders in Gaza half gas imports from Egypt as Hamas imposes more taxes
The "unprecedented" refusal to import the gas came as a protest measure against the new measures imposed on them by the Hamas-run finance ministry, according to some traders.
3 min read
16 January, 2023
Speaking to The New Arab, Mohammed Abu Hatab, a Gaza-based gas trader, said that "the finance ministry has raised the deduction rate from the profit margin of some companies importing the gas from Egypt." [Getty]

For the second day in a row, the Gaza-based traders of gas stations are refusing to receive the gradual quantities of cooking gas imported from Egypt.

The "unprecedented" refusal to import the gas came as a protest measure against new measures imposed on them by the Hamas-run finance ministry, according to some traders.

Speaking to The New Arab, Mohammed Abu Hatab, a Gaza-based gas trader, said that "the finance ministry has raised the deduction rate from the profit margin of some companies importing the gas from Egypt."

In the beginning, he added, "the ministry imposed its controversial and unacceptable decision on some companies only to see their reactions … later, it will adopt its new measure against all the companies."

"We have to protect our trading even though if we are forced to not import any litter of the gas in a bid to force Hamas and its ministries to not affect and harm our work in Gaza," he stressed.

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Raed al-Shawa, the head of the Gas Stations Owners Association in Gaza, told TNA that the Ministry of Finance deducted about one US dollar from the profit margin in 2019, while it keeps imposing taxes.

"For more than 2019, we have tried to deny the ministry from imposing its decisions against us by various means, including filing cases in the courts, but all of our attempts failed as none of the officials in the ministry wanted to listen to us," he argued.

"We were shocked as the ministry decided to increase the deduction of profit margin to US$1.2 despite the fact that we can only gain about US$3.8 from each gas pipeline of 12 kilos," Shawa added. 

"The profit margin of each gas pipeline is deducted from it US$1.4 for the distributor and US$1.2 for the Ministry of Finance, bringing the total to US$2.6, in addition to the tax and operating expenses, which means that the profit margin or the traders will not exceed US$0.29," he elaborated. 

The current situation of the gas stations is "unbearable,"  Shawa stressed, adding that gas traders have communicated with the ministry and the General Secretariat of the Council of Ministers since the first of last April, but have not reached any solution.

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For its part, the finance ministry said that the policy of financial dealing with gas supplied to Gaza did not undergo any change and no new fees have been imposed.

In a press statement sent to TNA, the ministry said "our consistent policy is to balance the interest of the citizen by providing this basic commodity at an acceptable price, and achieving an appropriate profit margin for gas companies."

"We are shocked by the step of some gas companies in an attempt to escalate a matter affecting citizens," the ministry noted.

It stressed that it is keen to ensure that gas continues to reach citizens at an acceptable price compared to its high cost, stressing that it will not accept that some people achieve their own interests without regard to the reality of the living situation.