Construction companies will spend up to £1 billion replacing abandoned petrol pumps at more than 100 sites across the UK.
The Ministry of Defence has said it will be using £200 million from its Defence Equipment Corporation Fund (DECF) to buy fuel-rich equipment from overseas, including from the US.
The £1.2 billion will come from a £5 billion fund in the DECF which has been used to buy and equip about 1,500 fuel-based pump units at sites across Britain since January 2016.
Dorset-based Oilfield Services said it expects to replace its petrol stations at a number of sites across England, Wales and Scotland by 2020.
It said it had invested £300 million to buy pumps for its own fleet and was also using a £200,000 loan from the Scottish government to buy equipment for its pump network.
“These investments are underpinned by the UK Government’s £3 billion Defence Equipment Fund,” said Oilfield.
“The Government will be utilising this fund to help invest in infrastructure to deliver new, more fuel-efficient and fuel-saving pumps across the country.”
The UK has been in a deep recession since the global financial crisis, and the UK’s public finances have been in financial trouble since last September.
But Oilfield said it would invest £1,000 per pump unit, or one million litres of fuel.
It is the biggest infrastructure investment in the UK since a £1 million pump upgrade to the main London Tube station in March.
Britain’s economy has been hit by falling oil prices and its banks have had to cut lending.