News
Thousands of West Bank Palestinians protest the high cost of living
Economic protests in the West Bank are beginning to gain momentum as thousands of Palestinians demonstrated throughout the territory yesterday against the high cost of living, especially the recent increase in fuel prices.
The increase in the cost of fuel stems from the recent hike of fuel prices in Israel, where the Palestinian Authority buys its fuel. The increase in the cost of fuel in Israel is being attributed to rising global oil prices.
Demonstrators denounced Palestinian Prime Minister Salam Fayyad, burning copies of his picture, and demanded that the government step down. They urged the PA to cancel the 1994 Paris Protocol, which created a customs union with Israel. Bus, truck and taxi drivers also went on strike for one hour, as part of the protests, effectively shutting down the West Bank’s public transportation system.
Earlier this week, the PA tried to appease protesters by indicating it was attempting to buy fuel from Arab states instead of Israel. However, the PA just signed a new agreement with Israeli fuel suppliers, just a few months ago, which obligates it to buy fuel from Israel for at least the next two years.
The West Bank economy has noticeably slowed down this year. Growth in the territory so far this year has been about five per cent, much lower than in 2008-2010. The unemployment rate is 18 per cent, and most of the unemployed are university graduates who have not been able to find work.
The situation is also expected to worsen in the coming months, due to the PA’s severe fiscal crisis. The crisis – which stems largely from a decline in international donations, particularly from Arab states – means the PA is having trouble paying both its workers and its suppliers.
In related news, the Palestinian news agency Quds Net reported overnight that PA Prime Minister Salam Fayyad intends to submit his resignation to President Mahmoud Abbas upon the latter’s return from Egypt. Sources close to the prime minister told Quds Net that ‘Fayyad is seriously considering resigning this time, and he has no intention of changing his mind’. The same sources said that Fayyad had phoned Abbas in Egypt and expressed his plans.