The Israeli Ministry of Energy warned of a “dangerous and chic shortage” in cooking gas after the attack by the “Bazan” complex in Haifa last week, which led to a complete stoppage in the refinery activity, which is the main source of this type of fuel in the local market.
According to an official message sent by the ministry to the directors of gas companies, a plan has been developed to determine the priorities of the distribution of cooking gas in the event of an actual deficit in the supplies. The Calcalist newspaper, which obtained a copy of the document, revealed that the Israeli families will be at the bottom of the priority list, which means that they obtain limited or temporary quantities only, compared to other more vibrant sectors.
Hospitals first and families last
The Ministry of Energy Plan showed that the maximum priority will be granted to hospitals and its sub -clusters, in addition to the role of caring for the elderly, bakeries, food factories, institutions with special needs, and vital industrial facilities, and that these bodies will obtain up to 60% of their normal consumption in normal conditions.
In the second place comes prisons, animal farms, hotels and food services that will get only 30% of their usual consumption.
As for the Israeli families that depend on central gas or household cylinders, in addition to the army and the police, they will be classified within the third and final category, as they will only get up to 10% of their previous needs, and will not be allowed to exceed one cylinder for each family.
West on the Palestinians
Among the scenarios that the government views, according to Kallest, is the use of emergency stocks, the reduction of the quantities of gas allocated to the Palestinian Authority, or the increase in quantities imported from abroad, although the imported gas is the highest cost compared to the product locally.
It is reported that Bazan was produced until November 2024 about 44% of the cooking gas used in Israel, and 19% comes from the Ashdod refinery, while the remaining quantity is imported through the lines of the government -owned Katsa company.
Data from the Ministry of Energy indicate that the monthly gas consumption in June reaches 40 thousand tons, a quarter of the quantity is directed to the Palestinian Authority, which means that the stop of Bazan produces a gap of about 25 thousand tons.
Although the Ministry of Energy and some major companies have reduced the possibility of actual deficiency, one of the sources in the energy sector confirmed to the Calcalast that the market is already facing a shortage of 7500 tons in the nearby weeks, and that some parties have begun to witness a decrease in the quantities of gas that it receives.
A focused and monopoly market
Although there are more than 50 companies operating in the Israeli cooking market, Calist confirmed that the market suffers from severe concentration. In December 2023 data, the Ministry of Energy indicated that 4 main companies, Electra Power, Zaghzaz, Amisrazaz and the role of gas, which controls 74% of the market, witnessed a decrease from 85% in 2016.
The report warns that increasing dependence on imported gas may cost companies.
In its recent reports, the company “Fazzaz” stated that the stopping of local refineries would force it to import additional quantities at higher prices, which may lead to concrete financial losses.
Reducing dependence on gas
According to the data of the Ministry of Energy Committee, which was prepared by BDO, 37%of gas consumption in 2023 went to the industry, while families’ consumption constituted 31%, trade and services 22%. The committee expected that the consumption of cooking gas will decrease in the future with the trend towards the use of natural gas and a transformation into electrical tools, such as thermal cooks.
Despite this, the report warned that the dismantling of the Haifa refinery, which comes within the Haifa Gulf evacuation plan, will inevitably lead to the stopping of the largest producer of cooking gas in Israel, which requires reducing dependence on it in daily uses.
The Ministry of Energy concluded its statement by saying: “As we announced previously, a shortage of cooking gas is not expected. The organizational procedures that have been approved aim to prevent any monopoly in distribution and ensure that the article reaches all consumers.”