The Palestinian Authority is placing a fuel embargo on Gaza by refusing to pay for industrial fuel for Gaza, the Energy Authority in Hamas-run Gaza has charged.

"In light of the sharp reduction in fuel deliveries, the power plant may have to shut down, leaving most of Gaza black," according to an energy authority statement quoted by the Bethlehem-based Ma'an news agency.

The PA, based in Ramallah, allegedly is using European Union aid to pay for an overstaffed civil service in Gaza while withholding money for fuel. Instead, it wants Hamas to pay more than $1 billion for unpaid electric bills.

Gaza officials, who previously have charged Israel with causing electric blackouts, said that they are receiving only one-third of the needed amount of diesel fuel to run its generator because of the PA's refusal to pay for more fuel.

The energy authority argues that it "sends its revenues to the ministry in Ramallah” but added that it deducts the cost of running the electric power plant. It also claimed that the de facto Hamas government in Gaza "does not intervene in any of the company’s operations and activities."