Hamas officials have said in recent days that the government's treasury is empty and that it is unclear when it will be able to pay salaries to 140,000 employees.
"As much as we don't want to see money transferred to the Palestinian budget now controlled by Hamas, we want to make every effort to make sure that vital humanitarian services continue," said Israel's foreign ministry spokesman, Mark Regev.
Under a revised Israeli decision, taken by Olmert's cabinet, a portion of the tax revenues can now be used to cover Palestinian Authority debts to Israeli electric and water companies as well as to hospitals.
The money can also be used to pay outstanding Palestinian bills to Israeli fuels firm Dor Alon.
A senior Palestinian official said Hamas Finance Minister Omar Abdel-Razeq met Abbas on Sunday and asked him to help come up with US$10 million to pay Dor Alon's bill to avert a petrol crisis.
Dor Alon, sole supplier of petrol and cooking gas to the Palestinian Authority, briefly cut off fuel supplies to the Authority over an unpaid bill in February.
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