AAFES gas prices hit new high; diesel down
May 11, 2007
Some records are better left unbroken.
Army and Air Force Exchange Service gasoline prices will hit an all-time high Saturday after prices in the U.S. shot up about 8 cents the previous week.
The new higher price for regular, at $3.22, which goes into effect midnight Friday, will smash the previous record of almost $3.16 per gallon in Germany by about 6 cents. That record was set in September 2006. Prices for other grades of gas will set new highs as well.
According to the latest U.S. Department of Energy data, stateside prices are still about 1.5 cents below their record of almost $3.07, which was hit in September 2005 in the wake of Hurricane Katrina.
There is, however, a small upside to this week’s price adjustment as AAFES’ diesel price will go down 1.9 cents a gallon.
Regular gasoline, meanwhile, will shoot up 8.3 cents, mid-grade will climb 7.6 cents and premium will spring up 7.1 cents in most locales.
AAFES’ price for regular gas is 44 cents higher than last May. A change in AAFES’ pricing policy is partly responsible for the difference between the exchange’s prices now as compared to a year ago. In February, the exchange began changing fuel prices weekly instead of monthly.
Since changing more frequently, AAFES gas prices have mirrored the skyrocketing prices at stateside pumps. Both have climbed 89 cents since the beginning of February, when AAFES’ prices hit an 18-month low.
“I don’t really care,” Sgt. Albert Watson said when asked what he thought about gas prices. “It could always be lower,” he said, but it is what it is. “We get the [Cost of Living Allowance] to counterbalance that.”
AAFES’ gas prices impact him because he drives a lot, but “it’s better than buying it on the economy,” said the 66th Military Intelligence Group soldier.
At an Aral gas station near Kelley Barracks in Darmstadt, Germany, regular gasoline cost about 1.38 euros per liter Thursday. Using Thursday’s military exchange rate, that’s about $7.26 per gallon.
In the Netherlands, prices for all grades of fuel, including diesel, were set at the “floor” selling price, according to an AAFES news release. At floor prices, AAFES sells fuel at the cost it pays plus its distribution costs.
Elsewhere AAFES’ gas prices were set using the weekly average from the DOE, plus the costs associated with providing motor fuel overseas.