The Fuel Company: When the Absence of Answers Becomes the Biggest Question

Author: Jamal Zaqout

In moments of crises, the importance of major decisions is not measured solely by what official entities declare, but by the truths they reveal, the guarantees they provide, and the questions they answer for the community. Decisions affecting public funds, strategic sectors, and the daily lives of citizens cannot gain legitimacy merely by being described as "reformative"; rather, they must prove their ability to genuinely improve performance, reduce burdens, and enhance public trust.

From here begins the questioning of the establishment of the National Fuel Company. The issue is not simply about adding a new institution to the administrative apparatus or redistributing tasks among existing institutions. It pertains to a sector that touches every detail of Palestinian economic and social life; from transportation and production costs, to the prices of goods and services, to the ability of families to cope with their daily burdens amidst a suffocating economic crisis.

Thus, the central question is not only: Why was the National Fuel Company established? But: What flaw has the current system become incapable of addressing, and what will the new company provide that existing institutions cannot?

A National Company in a Sensitive Sector: Necessary Reform or Change in Centers of Control?

In principle, establishing a national company to manage a vital sector such as energy is not exceptional. Countries set up such companies to enhance their negotiating power, ensure supply stability, improve resource management, or when the private sector refrains from investing due to the lack of a viable return on profits.

However, international experiences confirm that the success of national companies does not hinge on their name or legal form, but rather on the level of governance, transparency, independence, and oversight they receive.

The government states that the establishment of the company aims to separate the commercial role from the regulatory role; allowing the company to take on commercial activities, while the Public Petroleum Authority focuses on regulatory and oversight functions.

This could serve as an entry point for reform if it is based on clear authorities and avoiding conflicts of interest. However, the question that cannot be overlooked is: Are we facing institutional reform that reorganizes the sector to serve the citizen, or a reshaping of the balance of influence within a highly sensitive economic sector?

What Problem Did the Company Come to Solve?

Serious reform begins by identifying the problem. If the flaw is in the performance of the Public Petroleum Authority, where is the assessment that identifies the shortcomings? If the flaw lies in overlapping authorities, why wasn’t restructuring the existing authority the first option? If the goal is to enhance energy security, what new tools will the company possess that the existing institutions lack? Reform does not mean transferring tasks from one institution to another, or merely changing the legal name of the responsible entity. True reform is what citizens feel the impact of in their daily lives.

The Fuel Crisis: Was it the Cause for Establishing the Company or an Opportunity to Announce it?

The timing of the announcement regarding the company cannot be separated from the fuel shortage crisis that has raised concerns among citizens and economic sectors. Was the crisis a result of shortcomings in the current system that led to the establishment of the company? Or did the crisis provide the opportune political moment to announce a project that had been prepared in advance?

Answering this question is not aimed at launching accusations, but rather at understanding the decision-making process. If the company is part of a long-term strategic vision, the public has the right to access the studies that preceded it, its economic justifications, and the alternatives that were considered. However, if it was a response to an urgent crisis, citizens have the right to know how the deep-rooted causes of the crisis will be addressed, not just its manifestations.

The Open Market Dilemma: How Will Fair Pricing Be Ensured?

Perhaps the most sensitive question in the forthcoming phase is that of pricing. The fuel sector is not an ordinary market; it is tied to import costs, taxes, profit margins, the nature of the relationship with suppliers, and the political and economic restrictions imposed on the Palestinian market.

What guarantees will prevent the National Company from becoming a new channel for passing on to citizens the costs of any deficits or mismanagement? Will the pricing mechanism be subject to clear and announced standards? Will there be a clear ceiling on profit margins? Will the pricing formula be published to allow citizens to understand why prices rise or fall?

Trust is not built merely by announcing the establishment of a company but by the citizen's ability to know how the price they pay is determined.

Smuggling from the Israeli Market: A Challenge That Cannot Be Ignored

The sensitivity of the fuel file increases due to the peculiar geographic context of Palestine, especially in the West Bank, where there is an economic and geographic intertwining with the Israeli market, but this intertwining is unbalanced and practically flows in one direction. Any price difference between the two markets could serve as an incentive for unregulated fuel movement, whether through smuggling or leakage from unofficial channels.

How will the National Company ensure the prevention of fuel smuggling from the Israeli market into the Palestinian market if the economic and geographic boundaries remain the same? Are there any joint monitoring mechanisms and databases for follow-up? How will unfair competition between a company operating within the official system and a parallel market benefitting from price differentials be prevented?

The success of any national company in this sector depends not only on its ability to import and distribute but also on its capability to regulate the market and prevent its distortions.

Transparency: The First Test of the Company's Legitimacy

So far, basic questions need clear answers: Who are the board members? How were they chosen? What criteria were relied upon to form the board? Where is the economic feasibility study, and what is the nature of the ownership? What is the capital size, who will pay it, what financial return is expected, and how can this be achieved, especially since it is known that the Petroleum Authority sells what it imports at a loss on some items and at cost on others to limit smuggling?

These are not skeptical questions, but rather the minimum expected in an institution that manages a sensitive public sector tied to large financial flows and has a direct impact on citizens' lives. The absence of information does not necessarily imply a flaw; however, it creates a void that cannot be left in a decision of this magnitude.

The Citizen is the Measure of Success or Failure

A premature judgment should not be made on the National Fuel Company before it begins its work. It may be an opportunity for true reform if it is linked to transparency, accountability, and good governance. However, society has the right to obtain answers before it bears the consequences.

Thus, the final question is not only: Why was the company established? But: Will it become a tool to protect citizens and improve the management of a strategic sector, or will it turn into a new layer of complexity in an economy that is already laden with burdens? In issues that touch on public funds and people's lives, stated intentions alone are not sufficient.

Public interest is not established by slogans, but by transparency, clear accountability, and the ability to answer the bigger question: Did the National Fuel Company come to alleviate the crisis for citizens... Or could it, in the absence of sufficient guarantees, become the mother of crises added to their burdens?