Following the damage to the Bazan oil refinery in Haifa Bay, which was hit by an Iranian missile, killing three employees, Israeli energy company Sonol announced potential disruptions in the supply of fuel.
In the immediate term, no shortage is expected, especially given the reduction in road travel due to the current security situation. Israel also has emergency reserves that are to be opened in the event that such a shortage does materialize.
RELATED ARTICLES
Minister denies Israel faces fuel shortage
Delek is also expected to suffer from a similar problem, due to being another major customer of Bazan. The second largest refinery, in Ashdod, is also shut down for annual maintenance but holds a reserve of about two weeks.
“Force Majeure” notice
According to a letter Bazan sent to its customers, including Sonol, the Haifa refinery issued a “Force Majeure” notice, in which it announced that it would not be able to supply the products it had committed to in agreements, “Due to an unexpected disruption that is beyond our control in supply capacity.” This is of course due to the missile strike from Iran.
According to Bazan, the company is making “every effort to resolve the situation,” but stresses, “At this stage we do not know when we will be able to resume product supply.” Subsequently, Sonol issued a letter to its business customers, saying,”We are forced to inform you that we will reduce or stop, as the case may be, the supply of fuels to our customers.”
Ministry of Energy and Infrastructure reassures
The Ministry of Energy and Infrastructure is trying to calm the situation: the ministry insists, “There is no expectation of a fuel shortage in the economy. The Ministry has prepared in advance, Israel has fuel and reserves, and no shortage is expected.
“In a meeting held last night between the professional bodies of the Fuel and Gas Administration and the fuel companies, it was clarified to the companies that despite the damage to Bazan, no difficulty is expected in supplying fuel to the companies.”
Published by Globes, Israel business news – en.globes.co.il – on June 17, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
.png "When a Beneficiary Predeceases You: What Really Happens and How to Plan for It")
