Using Surpluses For A Variety Of Purposes

The Pentagon has reportedly been overcharging its armed services for fuel, including aviation fuel, to generate extra money for training Syrian rebels, bolster a prescription drug program, and cover unbudgeted costs for the war in Afghanistan.

MSN reports that as much as $6 billion has been generated by overcharging for fuel over the past seven years. 

Since WWII, the Defense Department has used a system under which it purchases fuel centrally and then sells it to the various armed services, which pay for the fuel out of their own budgets. It was intended to reduce redundancy and be more efficient. The Pentagon buys about 4.2 billion gallons of fuel each year.

But according to the report, the services have been charged up to $1 per gallon more than airlines pay for jet fuel on the open market, which has led to what some critics call a "bishop's fund" of $6 billion. 

Congress is aware of the practice, and has routinely approved of the Pentagon's request to divert excess money from fuel sales to other programs as a way of balancing the DOD's checkbook. But some are now asking questions about the practice that has resulted in what has been called a "slush fund" for the Pentagon.

In a statement, the Pentagon admitted that it had collected what it described as "enterprise gains" in the amount of $5.6 billion between 2010 and 2016, but said the discrepancy was due to falling oil prices and an "inherently volatile market."

FMI: Original Report