Fuel Smuggling in the West Bank (2018–2021): Palestinian Economic Agency under the Israeli System of Spatial Control

Abstract

This article critically re-examines the narrative that the Israeli system of spatial control has an exclusive negative impact on the West Bank economy. It focuses on the burgeoning fuel smuggling industry, which grew to constitute nearly one-third of the total consumed fuel in the West Bank by 2018. The article posits that the impacts of Israeli control on West Bank-Israeli economic relations involve an interplay between structural top-down imposition and Palestinian agency exerted from below. Drawing from documentary evidence and semi-structured interviews conducted with smugglers, Israeli, and Palestinian policymakers, the research reveals a paradox, finding its theoretical explanation in borderland studies. The barriers and fragmentation meant to oppress Palestinians create opportunities for new Palestinian economic beneficiaries. The article traces the emergence of smuggling networks that expand Palestinian-Israeli connections and cooperation. It concludes considering how the structure-agency interplay, which characterizes the Israeli colonial structure, affects the study of Palestinian political economy under Israeli occupation. This includes the influence of smuggling on supply, demand, pricing, and power hierarchies within the West Bank’s fuel sector.