Department of Defense Fuel Spending, Supply, Acquisition, and Policy
LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE
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The Department of Defense DOD consumes up to 1 of the petroleum products refined in the United States annually. Foreign purchased petroleum products may increase DODs consumption by a third or more. In FY1997 fuel represented 1.2 of the total DOD budget authority, and by FY2007 fuel represented 1.9. While the total defense budget authority increased 233 over the period of FY1997-FY2007 in current dollars, fuel costs increased 373. DODs fuel consumption varies from year to year in response to changes in mission and the tempo of operations. The majority of DODs bulk fuel purchases are for JP-8 jet fuel, which has ranged from 60 to 74 million barrels annually over the past decade the equivalent of 165,000 to 200,000 barrels per day. Continental U.S. jet fuel purchases make up from 60 to 76 of DODs total petroleum product purchases. Generally, the price that DOD has paid for JP-8 and JP-5 jet fuels has tracked the price of commercial equivalent Jet A-1 jet fuel.
- Economics and Cost Analysis