VZCZCXRO0327
PP RUEHROV
DE RUEHJM #1849 2811437
ZNR UUUUU ZZH
P 071437Z OCT 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 2961
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY

UNCLAS JERUSALEM 001849 
 
SENSITIVE 
SIPDIS 
 
NEA/IPA FOR GOLDBERGER/LENTZ; NSC FOR PASCUAL 
DEPT PLEASE PASS TO USAID FOR ANE/MEA:MCCLOUD/BORODIN 
 
E.O. 12958: N/A 
TAGS: PHUM ECON EAID PTER KTFN KWBG IS
SUBJECT: GAZA FOOD AND FUEL: MORE DIESEL THROUGH THE TUNNELS 
 
¶1. (SBU) Summary.  Gaza-based contacts report that shipments 
of humanitarian and commercial goods into Gaza from Israel 
were slightly higher in September compared to previous 
periods.  Fuel imports remain restricted, encouraging 
smuggling of diesel from Egypt.  Gaza sources and press 
reports note that increased supplies of diesel in Gaza have 
pushed prices down to near Israeli levels.  End Summary. 
 
Food imports 
------------ 
 
¶2. (SBU) Gaza-based UN contacts report that an average of 350 
truckloads/week has entered Gaza via Kerem Shalom and/or Sufa 
crossings since the first of September, a slightly higher 
rate compared to the previous period: July and August 
shipments averaged approximately 325 truckloads/week.  (In 
addition, approximately 250 truckloads/week of animal feed 
and grains enter Gaza via the Karni conveyor belt.)  The 
majority of shipments into Gaza remain commercial food and 
merchandise.  WHO contacts report that most families in Gaza 
have enough food to survive, but the inability to provide 
recommended nutrient levels will likely have negative 
long-term effects on the health of many of Gaza's children. 
(Note: The UN continues to use May 2007 import figures --when 
imports averaged 3,094 truckloads/week-- as a "baseline" for 
Gaza's requirements.  End Note.) 
 
Imports of fuel from Israel remain steady 
----------------------------------------- 
 
¶3. (SBU) PA and UN contacts report that fuel imports from 
Israel meet 25-40 percent of Gaza's demand and note that 
import totals have remained level for the past few months. 
The PA Gaza Fuel Agency director reported to EconOff on 
October 3 the following fuel import amounts through Nahal Oz: 
- Diesel - 1.2 million liters/week 
- Gasoline (Benzene) - 120,000 liters/week 
- Cooking gas - 1,000 tons 
- Industrial Diesel (for the Gaza Power Plant) - 2.5 million 
liters/week 
 
¶4. (SBU) The manager of the Gaza Power Plant said on October 
3 that the plant continues to average 60 MW output, which is 
roughly 35 percent of Gaza's total power supply.  Israeli 
feeder lines provide 115 MW, and 17 MW comes from the 
Egyptian grid. 
 
Smuggled fuel from Egypt increases 
---------------------------------- 
 
¶5. (SBU) PA contacts report that an increasing amount of 
diesel fuel is being pumped into Gaza via the tunnels from 
Egypt and sold on the black market.  Local press reports 
state that, as a result of improved fuel pump systems in the 
tunnels, the price of smuggled diesel fuel has dropped 65 
percent in recent weeks and now nearly matches prices in 
Israel.  (Note: We understand the quality of the smuggled 
diesel, however, to be much worse.  End Note.)  The Vice 
Chairman of the Gaza Gas Station Owners Association told 
Economic Specialist on October 3 that Gazans have asked 
tunnel operators to bring gasoline in through the tunnels, 
but the operators are hesitant due to its highly combustible 
quality. 
 
Eid demands on the tunnels: Chocolate and Sheep 
--------------------------------------------- -- 
 
¶6. (SBU) Gaza contacts also privately comment that the tunnel 
operators are highly responsive to local demand.  As an 
example, they shipped increased quantities of chocolate in 
advance of the Eid holiday.  Sheep are also being smuggled 
in.  One contact noted the ease in which sheep come through 
the tunnels: "All you have to do is get the first one 
through, and the rest follow." 
WALLES