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MAINZ-KASTEL, Germany – Let’s face it, no one likes the price of gasoline at the pump. But did you ever wonder how AAFES Europe calculates gas prices at its 22 direct -operated gas stations in Germany? Or why gas is more expensive in Europe than the U.S.?
“Gas prices seem to be a little higher than average in Germany, but it is a lot better than paying for gas off post,” said Steve Williams, of Manchester, Tenn., as he filled his car at the Mainz-Kastel AAFES gas station. “(AAFES gas) is definitely a good value compared to the economy.”
AAFES overseas fuel prices, as approved by its military board of directors, are based on the U.S. Department of Energy’s weekly average for each grade of gasoline in the continental U.S., plus the unique incremental costs incurred in each overseas market.
AAFES provides gasoline to authorized personnel in Germany per Army Europe Regulation 600-17. Customers use the Fuel Ration Card Program and are allotted liters of fuel based on the weight and horse power of their vehicle.
Without the Fuel Ration Card Program, authorized personnel assigned to Germany could be subject to fuel prices, found on the local economy, which can easily be more than 100 percent those at AAFES pumps.
“I believe AAFES offers a better deal on fuel prices compared to German prices,” said 1st Lt. Pascale McGraw, of Brooklyn, N.Y., and a member of HHC, 5th Signal Command at Wiesbaden Army Airfield.
While AAFES Overseas DOE fuel prices include unique incremental costs associated with providing fuel to authorized drivers, the Fuel Ration Card Program and market-based pricing provide tremendous value.
These bona fide costs vary by country. For example, costs related to the Fuel Ration Card/Gas Management Program, as well as labor costs, depreciation and other miscellaneous expenses account for 30 cents per gallon of fuel dispensed in Germany.
AAFES discontinued using the paper fuel coupon ration book and vehicle registration form in December 2008 at the behest of the German government.
The start-up cost to transfer to the fuel card program from the ration book program is factored into each liter of fuel dispensed.
This transition to the plastic debit card required the procurement of computer programs, main frames, Verifones, printers and CPUs for each gas station.
AAFES also created a Web-based online service program for each customer to log on and check their ration amount.
The process to have all AAFES gas station computers and all Esso gas station computers connect with AAFES headquarters in Dallas took approximately a year and a half to implement.
“It was a big project,” said Robert Konik, AAFES Europe Information Technology.
“I like that I don’t have to pay for gas off-post and pay German prices,” said Mr. Williams.
