WASHINGTON – Military units fighting in Iraq and elsewhere will see another hike in fuel costs next week. The cost increase will be the second time the Defense Department has had to raise rates in the middle of the budget year because of soaring oil prices.
On July 1, the cost for refined fuel will jump from $127.68 a barrel to $170.94. That is an astounding 34 percent jump in just six months and more than double what was being paid on behalf of the troops three years ago.
The new costs translate to about $4.07 a gallon for jet fuel and $4.70 a gallon for diesel.
A Pentagon spokesman said the price increase is needed to cover an anticipated $1.2 billion rise in fuel costs in the next three months. He said it will not affect ongoing military operations, but could affect daily support activities.