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Midgrade gasoline at all military installations in mainland Japan now retails for $2.50 a gallon after the Navy Exchange on Thursday bumped its fuel prices by 41 cents a gallon.

NEX officials said they raised the price after their wholesale cost for fiscal 2006 rose 41 cents — from $1.79 to $2.20 per gallon — on Oct 1.

“To hold prices down, the NEX only passed along the cost increase,” said Larry Boone, NEX Command automotive program manager, in a written response to Stars and Stripes.

He did not speculate how long the price might remain at $2.50.

The Army and Air Force Exchange Service on Tuesday boosted its midgrade gas in Japan and Okinawa by 47 cents, from $2.03 to $2.50 a gallon. Both NEX and AAFES purchase fuel in Japan from the Defense Energy Support Center at Yokota Air Base near Tokyo.

NEX officials said also effective Thursday (Oct. 6), diesel fuel would retail for $2.53 a gallon in mainland Japan.

In Guam, where gas for military installations is purchased from a different supplier, NEX’s new prices also mirror AAFES’. On Thursday, regular unleaded gas went up 12 cents, from $2.549 to $2.669 a gallon; while midgrade and premium unleaded rose eight cents a gallon — midgrade from $2.639 to $2.719, and premium from $2.739 to $2.819.

The new Guam prices are in effect for the month of October, Boone said.

NEX, Boone also wrote, prices gasoline overseas “using a mark-up over cost. Factors considered when determining the sell price of gasoline include expenses and overhead for conducting business in the respective geographical area. Policy is to target gross margin starting at 20 percent.”

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Jennifer reports on the U.S. military from Kaiserslautern, Germany, where she writes about the Air Force, Army and DODEA schools. She’s had previous assignments for Stars and Stripes in Japan, reporting from Yokota and Misawa air bases. Before Stripes, she worked for daily newspapers in Wyoming and Colorado. She’s a graduate of the College of William and Mary in Virginia.
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