NAPLES, Italy — Paying more for gas than people in the U.S. is one thing, but paying more for fuel than U.S. servicemembers stationed in other European nations incensed June Cretchain.
"All of us are in Europe. All of us should be paying the same amount for gas," Cretchain said. "It should be equal for all Americans in Europe."
The price plunge experienced this weekend for members serving in some European countries was not shared by those serving in Italy. The cost of fuel dropped nearly 10 percent Saturday at Army and Air Force Exchange Service stations in Germany, the United Kingdom and the Netherlands. The AAFES-set fuel prices followed on the heels of a record drop in the United States.
There is less flexibility built into the administration of the gas program in Italy, where prices are set by the Tax-Free Office once a month, instead of once a week, as done by AAFES.
With no service pumps available for personal use on any of the military bases in Italy, U.S. and NATO servicemembers buy coupon booklets to redeem at Italian-run Agip or Esso stations. Most motorists are allotted 300 liters of fuel each month.
Adjusting coupon prices weekly in Italy isn’t feasible and could create disparity among members in Italy, who would pay one price at the beginning of the month and another at the end, said Bart Di Muccio, administrator of the Tax-Free Office.
"It would be impossible for us to do that," Di Muccio said.
Gas prices tend to reflect those of AAFES over the long term, he added. "You will find occasions in which AAFES prices are lower, but if their prices decrease, ours tend to decrease, just at the start of the next month. Vice versa, if AAFES prices go up one week, Italy’s prices won’t go up until the next month," he said.
A long-standing contract between the U.S. Navy in Italy, the Italian government and the two oil supplying companies prohibits the Navy from setting gas prices based on stateside averages, he said.
The Navy pays "the industrial cost of fuel minus the taxes," — which runs about 30 percent to 40 percent less than what Italians pay at the pump.
With a 100-liter book for diesel selling this month for $134, the price translates to about $5.07 a gallon: a cost that is $1.19 higher than the AAFES cost of $3.878 in Germany, and $1.42 more than the stateside average price of $3.65, according to the U.S. Department of Energy’s weekly cost analysis.
A 100-liter book for unleaded fuel in Italy runs $120, or $4.54 a gallon. This week’s cost in Germany is $3.360, a fare costing motorists $1.18 less a gallon than in Italy. In the States, the DOE set the average for regular unleaded fuel at $3.15.
"What the heck?" asked Romeo Rojo. "I did not know there was such a difference in what we are paying here."
Sometimes, motorists in Italy pay more for fuel than other Europe-based members, and sometimes less, which led to several people interviewed to say that the overseas military should build more uniformity into the program.
Each month, the Navy’s Tax-Free Office, which runs the coupon program in Italy, sets the cost of coupon prices, based on the cost of fuel, the dollar-to-euro exchange rate, and any financial gains or losses from the previous month.
It also assesses a 15-percent surcharge that customers pay to cover the costs of running the program.
