'Collective punishment'
Gaza is heavily dependent on fuel delivered through Israel but supplies have been reduced over the last month.
On Sunday, the Fuel Companies Association in Gaza said it was offered just 25% of the normal amount.
Its chairman said accepting such low supplies of fuel would amount to participating in what he called "the collective punishment of Palestinians by Israel".
Officials say 90% of petrol stations in Gaza have shut, but also say medical patients are now at risk because supplies vital for running generators are running out at hospitals.
On Thursday, human-rights groups failed in an attempt to persuade the Israeli Supreme Court to overturn the policy on humanitarian grounds.