After the nationwide average of fuel prices increased significantly due to the war in Iran, U.S. lawmakers are grappling with its effects on aviation fuel ahead of approval for fiscal year 2027’s National Defense Authorization Act request.
A portion of the U.S. Air Force’s budget is set aside for the purchase of aviation fuel based on a predicted fuel price and an increase in flying hours for fiscal 2027, but that cost was estimated and submitted in their budget request before the war began, Sen. Tim Kaine, D-Va., said on Thursday at a Senate Committee on Armed Services hearing.
“My understanding is the president’s budget submitted to us did not include any costs that were costs related to the Iran war because it had largely been prepared and submitted through this budgetary chain of command before the Iran war started,” Kaine, a committee member, said in the hearing.
At the hearing on the department’s posture related to fiscal 2027’s defense authorization request, Air Force Chief of Staff Gen. Kenneth Wilsbach said that the service did account for the increased cost of flying hours in the request and estimated that cost before the market determined the true cost.
“Some years it’s more, some years it’s less. So we will adjust our dollars if we end up having to pay more per dollar for a gallon of fuel if it ends up being more than we assessed,” Wilsbach said.
Aviation fuel costs are not an issue unique to the Air Force even though it is the largest consumer across the federal government. All branches of the U.S. military utilize aviation fuel to manage and operate their own drones, helicopters and aircraft fleets.
Kaine said that aviation fuel costs have increased roughly 50% since the war started on Feb. 28 and that while writing fiscal 2027’s NDAA, the committee needs to deal with the new reality of costs on the commercial side, given its effects on the American people.
At the pump, gas prices have surged around $1.50, making the national average about $4.50 since the war commenced. Commercially, U.S. airlines fuel cost increased by 56.4%, or $3.23 billion, since February, according to the Bureau of Transportation.
Wilsbach said the force assumed a 10% increase in flying hours costs from last year in this upcoming fiscal year budget.
The force’s budget requests funding for 1.1 million flying hours, which is considered the “maximum executable level for the total force,” and allots $9.9 billion for the flying hour program, which includes aviation fuel among other maintenance and operation items.
Wilsbach did not indicate what is the assumed cost per gallon of PB, which is a Propane-Butane liquid gas blend commonly used by the Air Force for field operations.
He said that the Air Force department had long-term contracts for fuel purchases and now has storage built up, so the specifics can’t be known until that storage runs dry. Kaine pressed on whether that 10% increase is deemed sufficient considering the rise in costs.
“It’s hard to say at this point, but what I’ll tell you is this is routine for us,” Wilsbach said.
“Every year, the cost of flying hours changes from the time we budget for it to the time we execute it, and we work it out with moving money around in various accounts to cover down on the cost,” he continued.
When posed by Kaine on if the potential cost is being considered in preparation of a possible supplemental bill, Secretary of the Air Force Troy Meink said that it depends on how long these costs stay high to determine their corresponding impact.
Meink said that in a previous hearing, Jay Hurst, who is performing the duties of Pentagon comptroller, mentioned the country is facing about a $29 billion impact, which includes some operation and maintenance fuel cost.
By the end of 2026, it is estimated that the American public will have paid over $193 billion in excess fuel costs because of the Iran war. As of today, American consumers have already paid $40 billion more for fuel.
Kaine highlighted these estimates, saying that it demonstrates the challenge families are facing now.
“I suspect as we’re looking at the military budget, we’re going to see a similar need to adjust it pretty dramatically because of fuel costs,” Kaine concluded.
Cristina Stassis is a reporter covering stories surrounding the defense industry, national security, military/veteran affairs and more. She previously worked as an editorial fellow for Defense News in 2024 where she assisted the newsroom in breaking news across Sightline Media Group.
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