DOD reprograms $700M as fuel costs climb

Congress has granted the Defense Department authority to reprogram $700 million to pay for increases in the cost of fuel, according to a new Pentagon budget document.

The funds, which are being made available from DOD's foreign currency fluctuations account, will be transferred to the Defense Logistics Agency.

“The Defense Logistics Agency has experienced cash losses caused by significant increases in prices for refined fuel products above the Standard Fuel Price budgeted for these products,” the reprogramming document states.

Congress approved a separate fuel reprogramming earlier this year for $969 million.

DOD Comptroller Mike McCord told Congress in April he expected the department would need an additional $1.8 billion in fiscal year 2022 to address the ongoing spike in global fuel prices, despite having already been provided with an additional $1.5 billion to cover the bill.

“Fuel is our most volatile and the most easily recognizable price increase when prices change,” he told the House Budget Committee on April 27.

Meanwhile, the OPEC+ alliance, which includes Russia, has announced it will cut 2 million barrels a day in oil production, likely leading to another spike in oil and gas prices around the world.