The Defense Security Cooperation Agency notified Congress April 16 of a possible Foreign Military Sale to Israel for 864,000,000 gallons of petroleum based products for an estimated cost of $2.67 billion.
The Government of Israel has requested a possible sale of 864,000,000 gallons of petroleum based products consisting of JP-8 aviation fuel, diesel fuel and unleaded gasoline. Due to volatility in the oil market, this notification requests a total quantity of these various fuels rather than specific quantities of individual fuels. The estimated cost is $2.67 billion.
The United States is committed to the security of Israel, and it is vital to U.S. national interests to assist Israel to develop and maintain a strong and ready self-defense capability. This proposed sale is consistent with those objectives.
The proposed sale of the JP-8 aviation fuel will enable Israel to maintain the operational capability of its aircraft. The diesel fuel and unleaded gasoline will be used for Israeli ground vehicles. Israel will have no difficulty absorbing this additional fuel into its armed forces.
The proposed sale of these three types of fuel will not alter the basic military balance in the region and will provide Israel with the necessary flexibility to balance its individual fuel type needs as the situation requires.
The U.S. vendors are unknown at this time due to the competitive bid process for the supply source(s).
There are no known offset agreements proposed in connection with this potential sale.
Implementation of this proposed sale will not require the assignment of any additional U.S. Government or contractor representatives to Israel.
There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.
This notice of a potential sale is required by law and does not mean the sale has been concluded.
Source: Defense Security Cooperation Agency (DSCA)
Date: Apr 18, 2013