The only gas and oil terminal on the Gaza border has been shut down leaving thousands of people facing a shortage of gas this winter.
The Nahal Oz terminal has been closed permanently due to security reasons.
The terminal has been the site of a number of attacks by Palestinian militants and still bears the scars of a particularly brutal mortar attack.
An official from the Israeli coordination office for the Gaza Strip said it would only act as a backup when the Kerem Shalom terminal in the south is too congested.
Critics say that the Kerem Shalom does not have the proper infrastructure to meet the areas cooking gas needs.
Amr Hamad, executive manager of the Palestinian Federation of Industries, said: At Kerem Shalom, there is no infrastructure [for gas transport], and only limited amounts are allowed in. Cooking gas is so important to Gaza right now particularly with the siege – we rely on it totally.
This move has forced local bakeries to close, hospitals to stop its cooking and laundry services and it is threatening families abilities to cook and heat their homes in the winter.
To survive Gaza needs 6,000 tonnes of gas per month but after the terminal closed just over 1,600 tonnes were supplied in October and less than 1,000 tonnes in November.