"In 2008, the fuel shipped to Israel from U.S. refineries accounted for 2 percent of Israel's $13.3 billion defense budget. Publicly available data shows that about 2 percent of the U.S. Defense Department's budget is also spent on oil. A senior analyst at the Pentagon, who requested anonymity because he is not authorized to speak to the press, says the Israel Defense Force's fuel use is most likely similar to that of the U.S. Defense Department. In other words, the Israeli military is spending about the same percentage of its defense budget on oil as the U.S. is. Therefore it's possible that the U.S. is providing most, or perhaps even all, of the Israeli military's fuel needs.
What's more, Israel does not need the U.S. handout. Its own recently privatized refineries, located at Haifa and Ashdod, could supply all of the fuel needed by the Israeli military. Those same refineries are now producing and selling jet fuel and other refined products on the open market. But rather than purchase lower-cost jet fuel from its own refineries, the Israeli military is using U.S. taxpayer money to buy and ship large quantities of fuel from U.S. refineries." (Thanks Yaz)