Fuel-cost worries extend to Pentagon

Fuel-cost worries extend to Pentagon
By William H. McMichael and Rick Maze - Staff writers
Posted : Saturday May 17, 2008 7:27:50 EDT

The skyrocketing cost of fuel isn’t just hitting U.S. drivers in the pocketbook — it’s blowing a bit of a hole in the Pentagon budget as well.

In a revised request for supplemental war funding for fiscal 2009, submitted May 2, defense officials have asked Congress to appropriate $3.69 billion for all fuels, a $2.2 billion increase over their initial request.

That, of course, looks far ahead and could still prove to be inadequate. According to Pentagon budget documents, the request would support a crude oil price of $97.19 per barrel — and also assumes that the military’s overall fuel costs will drop by 4.8 percent.

The current world price, however, has climbed to and is hovering around $120 per barrel, and many analysts think rising global demand and other factors will keep prices high.

And 2009 isn’t the only concern; the Pentagon needs more money for fuel to cover the remaining five months of this fiscal year.


Rest of article at: http://www.armytimes.com/news/2008/05/army_fuel_051908w/



uhc comment: Follow this logic - the military uses 1,200,000 barrels of oil a month. At $126 a barrel, that's $151,200,000 a month. There are twelve months in a year, which equals $1,814,400,000 a year. $3,690,000,000 isn't even close to $1,814,400,000.