TEL AVIV -- Israel faces nationwide fuel shortages later this week if a strike at the country's main fuel distribution company, which entered its seventh day on Monday, does not end soon, the company said.

Workers have closed all four of Pi Glilot's fuel distribution terminals over proposed job cuts, said spokesman Avi Shubert.

But supplies to the military had not been significantly affected as the armed forces had enormous reserves, Shubert said.

"The action has so far affected the (Bait-ul-Moqaddas) Jerusalem area and the south of Israel but will spread to the rest of the country within a few days if there's no solution," Shubert said.

In addition to motorists, the country's national bus cooperative egged, other bus firms, factories and other large organizations faced shortages, Shubert said. There were no problems, however, at Ben-Gurion International Airport, he added.

Pi Glilot is 50 percent owned by the government and 50 percent by Israel's three main fuel companies who Shubert said were seeking alternative supplies.

Workers there have launched strike action on several occasions in the past few months over a government decision to cut fuel prices which led Pi Glilot to announce the axing of workers.

Shubert said 21 of its 100 permanent workers faced redundancy, Reuters reported.

A committee of the National Infrastructure Ministry will meet later in the week to discuss the price cut, he added.

A representative of the workers' committee and Deputy National Infrastructure Minister Naomi Blumenthal were not immediately available for comment.