The Palestine Liberation Organization (PLO) has said it holds the Israeli government "fully responsible" for the death of Riham Dawabsheh, the mother of a Palestinian toddler killed in an arson attack on 31 July in a Palestinian village in the West Bank.

Israeli settlers are suspected of throwing flammable liquids and Molotov cocktails inside two homes in the village of Duma, near Nablus, in the 'price-tag' arson attack in which 18-month-old Ali Saad Dawabsheh was burned to death. Dawabsheh, 26, died on 6 September from injuries sustained after suffering third-degree burns to at least 80% of her body.

What are 'price tag' attacks? 'Price-tag' is a term used to describe attacks – usually carried out by suspected Jewish settlers against Palestinians but also targeting Christian churches and Israeli Arabs – in retribution or punishment for the Israeli government's actions perceived as pro-Palestinian. The nationalist hate crimes are aimed at exacting "a price" for government actions, such as demolishing settlements. Last month, a tent was torched and Hebrew-language graffiti sprayed in a bedouin village in the West Bank. Residents and campaign organisations claim the attack was orchestrated by Jewish settlers.

Saeb Erekat, Palestinian chief negotiator, called the assassination a consequence of a "culture of hate that has been developing in Israel by supporting settlements and apartheid", which, he claimed, is fuelled by "hate speech, settlement expansion and the impunity granted to Israel by the International community".

After the firebombing, a Jewish Star of David was spray-painted on a wall along with the words "revenge" and "long live the Messiah", according to the New York Times.

Benjamin Netanyahu, Israel's prime minister, pledged to tackle the issue and labelled the firebombing "terrorism".

"I am shocked over this reprehensible and horrific act. This is an act of terrorism in every respect. The State of Israel takes a strong line against terrorism regardless of who the perpetrators are."

Graffiti sprayed on the wall of the burnt second home pic.twitter.com/FRMW0KbvIs — Stefanie Dekker (@StefanieDekker) July 31, 2015

Erekat, however, accused the Israeli government of failing to tackle Jewish violence. Netanyahu recently approved the construction of 300 settler houses in Beit El, the occupied West Bank site where settlers clashed with police after the plans were revealed for the demolition of their homes.

"If Israel is not stopped and held accountable then Riham will not be the last victim of Israeli terror," he said in a statement, adding the Israeli government needed to bring "the terrorists to justice".

Dawabsheh's husband Sa'ad, 32, died from his injuries eight days following the attack, while four-year-old Ali, another son of the couple, remains in hospital.