DOD Inflation: Updated Estimates of DOD's Fuel Inflation Dividends
Abstract
On September 5, 1986, we responded to your request for an updated estimate of inflation dividends within the Department of Defense (DOD) budget. At that time, we did not include a fuel inflation dividend. This report provides estimates of DOD's fuel inflation dividends for fiscal years 1986 and 1987. In July 1986, the Office of Management and Budget (OMR) issued preliminary projections of changes in fuel prices, indicating that fiscal year 1986 fuel prices would probably decline by 29.4 percent from the actual fuel prices in fiscal year 1985 and decline an additional 20 percent in fiscal year 1987. In July 1986, DOD used these percentage changes in fuel prices to calculate potential fuel inflation dividends for fiscal years 1986 and 1987. When making these calculations, DOD also included changes in the mix of petroleum products to be procured. Based upon these assumptions, DOD's inflation dividend estimate for fiscal years 1986 and 1987 was $3.10 billion. This amount was included in DOD's July inflation report, which was submitted to the Congress.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1987
- Accession Number
- AD1157252
Entities
People
- Frank C. Conahan
Organizations
- United States Government Accountability Office