MARINE CORPS AIR STATION IWAKUNI, Japan — For a time earlier this year, drivers here paid some of the lowest gas prices in the region.
But the cheap ride is over — the price at Iwakuni’s pump has held at $4.53 per gallon of unleaded since July and is now the most expensive gas stop among Pacific bases, even as prices have plummeted in Korea, Guam and stateside.
The cost is causing some grumbling and was slated for discussion at the air station’s annual town hall meeting from 6-8 p.m. Wednesday.
"Why are we paying more than Americans? We are Americans, too," said Lance Cpl. William Higgins, who was filling his tank at the base Monday. "All the bases in Japan and Okinawa are paying less, so why are we paying so much?"
Overall, the air station has been mostly immune to the week-to-week roller coaster ride of fuel prices over the past year due to its Marine Corps Community Services supply and pricing system, which is different than the Army and Air Force Exchange Service and the Navy Exchange, air station officials said this week.
Since December, the station has had only two pricing changes — including a jump July 1 from $3.47 to its current price — which were due directly to repricing by its supplier, the Defense Energy Support Center, said Capt. J.M. Kut, a station logistics officer.
"They dictate the price" of fuel that is sold to the air station, Kut said.
The next change in cost is expected to come as early as next month as the federal government works out its budget plans and sets its fuel prices, he said.
Iwakuni buys its fuel from the Pentagon for the same cost as AAFES and NEX in Japan and Okinawa — $4.19 per gallon of unleaded, according to air station officials. The cost for that midgrade gas at AAFES and NEX base pumps has been holding steady for several weeks at $4.06.
But both exchange retailers price gas based on average gas costs in the United States and both are selling gas at a loss now because the DESC overseas selling price remains high, AAFES and NEX officials say.
Iwakuni is a much smaller market and cannot afford to change its prices regularly and operate at a loss, Kut said.
That means the price at the Iwakuni pump only changes when the DESC fuel price changes, typically once per year when prices are not so volatile, he said.
The DESC fuel pricing system is meant to provide stability in the military budget despite the swings of the market, the agency said on its Web site.
Meanwhile, the air station buys its gas and passes it to MCCS for retail sale, according to base officials.
MCCS adds a 34-cent surcharge onto the price per gallon and uses the money for its retail overhead costs and to fund its many community services, said Steve Howard, MCCS marketing director.
That surcharge has not changed in four years, despite increasing fuel costs, and all profits above overhead costs are put back into the community, Howard said.
Of the 34-cent surcharge, 20 cents is spent on expenses such as payroll, maintenance and assessments, leaving 14 cents for MCCS recreation and community programs, he said.
Howard said the changes in gas costs can be frustrating for consumers but MCCS has not made any additional profits.
"Again, it’s important for them to know, we are not making one penny more," he said.
