DOD reprograms nearly $1B for mounting fuel costs

Congress has given the Defense Department approval to reprogram $969 million toward the Defense Logistics Agency to cover the rising cost of fuel, according to a Pentagon document.

“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 June 2 Pentagon reprogramming notice states.

Congress has agreed to allow DOD to reprogram $969 million from the department’s foreign currency fluctuations fund to address the shortfall.

The Pentagon’s unplanned fuel costs are expected to grow even larger.

Mike McCord, DOD comptroller, told Congress in April he expected the department would need an additional $1.8 billion funding increase 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, DOD also wants congressional approval to shift nearly $3 billion in unspent funds toward a host of areas, including priority weapons programs like systems to counter small, unmanned drones as well as "must-pay bills" brought on by "inflationary pressure," according to a Pentagon "omnibus" reprogramming document obtained by Inside Defense.