Fuel prices rose dramatically in FY2008. According to one report, the Iraqi government reduced its subsidies from $6 billion in 2005 to approximately $2.5 billion in 2007. Comparing the cost of fuels delivered to the CENTCOM area of responsibility and the cost paid by Iraq's civilian population is difficult. Where comparable fuels such as gasoline and diesel are used, it is estimated that the military units pay higher prices than Iraqi civilians paying the official price for a number of reasons, including (1) the Iraqi government subsidizes the cost of gasoline and diesel in Iraq, (2) the military likely has higher transportation costs associated with bringing fuel into Iraq, and (3) the price charged by the DESC is the "level price" that it charges to all its military customers around the world, irrespective of the actual cost of fuel supplied to Iraq.
Since the invasion of Iraq in 2003, the average price of fuels purchased for military operations in Iraq has steadily increased. The disparity between the higher price of fuel supplied to the United States Central Command compared to Iraq's civilian population has been a point of contention. Several factors contribute to the disparity, including the different types of fuel used by the military compared to Iraqi civilians, the Iraqi government's price subsidies, and the level pricing that the DOD's Defense Logistics Agency charges for military customers around the world. The Iraqi government has been pressured to reduce its fuel subsidy and black market fuel prices remain higher than the official subsidized price.