Please ensure Javascript is enabled for purposes of website accessibility

U.S. Companies to Bid to Sell Israel Fuel Valued Around $2.7 Billion

By Rich Smith - Apr 18, 2013 at 10:34AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

US Defense Security Cooperation Agency asks Congress to OK the multibillion-dollar sale of fuel for jets, ground vehicles.

Wednesday was a busy day for the U.S. Defense Security Cooperation Agency, the outfit responsible for coordinating military sales contracts between the U.S. and its allies and getting Congress's "OK" on such sales before they can proceed. DSCA notified Congress of no fewer than five such upcoming "foreign military sales" contracts Wednesday. But the biggest contract on its list wasn't for "arms sales" at all.

It was for gasoline [link opens in PDF].

To be precise, it was for JP-8 aviation fuel, diesel, and gasoline -- 864 million gallons of the stuff worth $2.67 billion in aggregate -- which the Government of Israel has requested that the U.S. sell to it to keep its military humming. As DSCA explained in its notification to Congress: "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."

DSCA says it does not yet know which company or companies would supply the fuel to Israel. A competitive bid process for the supply sources is expected to be held (assuming the sale is permitted to proceed). However, in past sales of such large fuel stocks -- JP-8 in particular -- ExxonMobil has been said to serve as Israel's supplier.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.