Demystifying AAFES gas pricing

The Egyptian pyramids. The Loch Ness Monster. Army & Air Force Exchange Service gas prices?

While some mysteries continue to baffle, AAFES gas pricing has
definitive explanations and policies, as set by the AAFES Board of
Directors, composed of senior leaders from across the Army and Air
Force.

At AAFES gas stations outside the continental United States, gas prices
are based on U.S. Department of Energy monthly averages for each grade
of gasoline sold in the continental United States plus incremental
costs incurred in each overseas market.

Each country has its own unique incremental costs, which explains why
gas prices in different countries like Germany, England and the
Netherlands can vary while being based on the exact same average and
pricing formula.

Incremental costs are bona fide expenses that include costs related to
the gas coupon management program as well as labor costs and
depreciation.

According to AAFES Senior Vice President Jack Morris, a country’s Status of Forces Agreement can also impact prices.

“The government of Japan, for example, makes funds available to offset the costs of every day items such as gasoline,” he said.

Because of the U.S. SOFA with the government of Japan, American service
members and their families who fill up at AAFES pumps in Japan and
Okinawa receive an automatic per gallon reduction off the DoE average
plus incremental dispensing costs.  

“While on the surface the issue of gas pricing may appear to be a
mystery, pump prices are actually based on a standard set of
principals,” said Mr. Morris. “AAFES welcomes customer participation to
debunk myths concerning its gas pricing procedure.

“Anyone interested in taking part in this process is encouraged to contact
their local general manager,” he said.