Gas prices on bases in South Korea and Guam will drop an average of 30 cents a gallon on Saturday, with the cheapest — regular unleaded — ringing in at $3.28 a gallon.
That’s about 78 cents per gallon less than what servicemembers pay in mainland Japan and Okinawa — or a savings of about $8 for 10 gallons of gas.
Midgrade fuel on mainland Japan and Okinawa will remain at $4.06 a gallon Saturday, making it more expensive than any state or regional average in the United States at the moment. Midgrade and diesel are the only varieties available on mainland Japan and Okinawa.
The steep price declines at military pumps in South Korea and Guam come as prices continue to fall stateside.
Midgrade gas as of Monday was averaging $3.29 a gallon in the States, according to the Energy Information Administration.
The average price of a gallon of regular gasoline in the United States also fell to $3.15 — down 48 cents in two weeks, according to EIA.
On Saturday, regular unleaded on Guam will drop 33 cents to $3.329 per gallon, while the $3.28 for unleaded in South Korea represents a 29.5-cent savings from the previous week.
Midgrade on Guam will also drop 33 cents, to $3.469, according to the Army and Air Force Exchange Service, which on Thursday released fuel prices for the upcoming week. In Japan and Guam, the Navy Exchange matches AAFES prices.
Diesel on Guam was to fall 21.6 cents to $3.751 per gallon — compared to $3.853 a gallon on mainland Japan and Okinawa.
AAFES and NEX officials have said midgrade petroleum prices in mainland Japan and Okinawa won’t come down until the Defense Energy Support Center relaxes its wholesale price of $4.19 a gallon to its military customers.
Both AAFES and NEX buy gas in Japan at a fixed cost through DESC. In Guam and South Korea, AAFES buys gasoline from a different supplier, and those costs fluctuate with the local economy.
It’s unknown when DESC will lower its prices. The agency at the start of the fiscal year opted to maintain a composite fuel price of $170.94. On Tuesday, oil was trading at $78.63 per barrel amid the current global economic downturn.
Even gas prices off base in Japan are closing the gap: The price this week for a liter of gasoline off base on Okinawa was 132 yen; the dollar price per liter of gasoline on base at AAFES is $1.073.
DESC officials as of Thursday had yet to answer a query from Stars and Stripes asking when it plans to lower its wholesale costs. John Roth, Defense Department deputy comptroller, said in a memo last month that the price may be reviewed in November.
Until then, it’s unlikely petroleum prices will budge in mainland Japan and Okinawa.
"I think right now we kind of hit a point where we can’t really go much lower until DESC resets that price," said Rear Adm. Robert J. Bianchi, the commander of the Navy Exchange Service Command, in an interview with Stars and Stripes this week. He said that NEX is losing 13 cents on every gallon sold due to its current price contract with DESC.
Stars and Stripes reporters Dave Ornauer and Tim Wightmancontributed to this story.
