News
Servicemembers question AAFES fuel costs
Stars and Stripes October 4, 2008
In fiscal 2007, when market prices shot higher than wholesale costs, the Army and Air Force Exchange Service generated a gross profit of nearly $7.5 million on Japan fuel sales.
But it’s still not feasible for AAFES to take a temporary loss on fuel, AAFES officials say.
"AAFES’ mission is to provide quality merchandise and services at competitively low prices and to generate earnings which provide a dividend to support MWR programs," said AAFES spokesman Master Sgt. Donovan Potter. "Selling a product for less than it costs to procure and provide would be inconsistent with the mission." Last year, AAFES returned $232 million in dividends on sales worldwide, officials said.
But some customers don’t buy it, arguing that if AAFES can raise prices to keep pace with market trends, there shouldn’t be a restriction on lowering prices.
Neil McCrea, 30, a U.S. contractor at the Shariki Communications Site in northern Japan, said he’d always heard it was AAFES’ policy "to be compatible" with what’s going on in the States.
"Their overall goal is to service the servicemember, right? They should drop the price," McCrea contended.
At Sasebo Naval Base, Petty Officer 1st Class Daryl Robinson said he can remember when gas was $1.04 per gallon and cannot see a reason residents at bases in Japan continue to pay $4.06 per gallon as prices drop in the United States.
"If our counterparts stateside are paying a lower rate, then why can’t we?" Robinson said Wednesday.
The roughly 30-cent to 40-cent difference per gallon of gas adds up during his daily 20-minute commute from his home to the Navy base, he said.
"Sometimes, I wish I lived closer so I could ride a bike in," he said.
But Petty Officer 1st Class Daniel Bellwood, also from Sasebo, said the high gas prices at Japan bases are not a big deal despite his daily commute from the Hario housing community to main base.
"We will be at $4.06 when the States are at $4.50, so it evens out sooner or later," Bellwood reasoned.
Fluctuating gas prices are just part of life when living at U.S. bases in Japan, said Petty Officer 3rd Class Heather Thoele.
"I can see that they (the U.S. military) try to do the best they can," said Thoele, stationed at Sasebo. "But again, there’s only so much they can do for us."