AAFES gas prices hit record highs with no relief in sight
April 11, 2008
AAFES gas prices in Germany and the United Kingdom will break into record territory again Saturday, adding roughly 4 cents a gallon to all unleaded grades.
But that’s only part of the bad news.
Prices are expected to go even higher — possibly above $4 a gallon in the U.S. — according to a report Tuesday from the U.S. Energy Information Administration, which tracks and predicts global energy trends. If that happens, Army and Air Force Exchange service prices, which use U.S. prices as a baseline, will certainly rise well beyond that mark if they haven’t already.
Diesel prices passed $4 a gallon in every European locale March 22, and remain above that mark despite two weeks of modest price declines.
In the Netherlands, where fuel is so costly that AAFES sets its prices just high enough to break even, all fuel grades are above $4 a gallon for a second straight week. Midgrade, up 7.9 cents in the Netherlands, and premium, up 7 cents, are in record territory. Diesel, which rises to $4.551 per gallon, is still more than 14 cents away from the record set in March.
Though at record highs, the exchange’s gas prices in Germany and the U.K. are nowhere near those prices.
Regular gas, the cheapest fuel available to U.S. forces in Europe, nudges 4.2 cents higher to $3.499 a gallon. It is sold only in Germany.
Midgrade — available everywhere — climbs 3.9 cents higher in Germany and the U.K., while premium hops up 3.8 cents a gallon.
Gasoline prices in Germany and the U.K. have risen roughly 37 cents a gallon in the past two months, keeping in lock-step with U.S. trends.
The Energy Information Administration this week bumped up its predictions for average monthly fuel prices, saying gasoline is expected to peak at about $3.60 per gallon.
“It is important to note, however, that even if the national average monthly gasoline price peaks around $3.60 per gallon this summer, it is possible that prices at some point will cross the $4 per gallon threshold,” the administration’s short-term energy outlook said.