AAFES gas prices in Pacific drop again for November
October 29, 2006
CAMP FOSTER, Okinawa — If you can wait until Wednesday to fill up your tank at AAFES gas stations, you’ll stand to save at least 14 cents per gallon in Japan and on Okinawa, 21 cents in Korea and 22 cents in Guam.
The Army and Air Force Exchange Service announced Friday that gasoline prices in the Pacific will drop for the second month in a row, and they’ll be lower than prices for the same month last year.
In Japan and on Okinawa, that means a gallon of midgrade unleaded will cost $2.232 per gallon, a drop of 14.4 cents from October. The price for diesel has dropped even lower — $2.338 per gallon, a 57.5-cent decrease.
In November 2005 a gallon of midgrade cost $2.50 per gallon.
In Korea, a gallon of unleaded will cost $2.29, some 21.5 cents lower than the October price. Premium gas will cost $2.496 per gallon, a drop of 23.8 cents, and the price for a gallon of diesel in Korea will be $2.581, down 14 cents.
On Guam, unleaded gas will cost $2.279, down 22 cents from October. Midgrade will cost $2.389 and premium will cost $2.499, each 23 cents lower than the October price.
The price decreases follow dips in the average price of gasoline in the United States, primarily due to an oversupply of crude oil, according to AAFES.
“Gas prices are a very sensitive issue with our customers here in the Pacific,” Dan Tompkins, AAFES Pacific Region senior vice president, was quoted in a news release as saying. “We are happy to pass along a price reduction this month and hope this trend continues.”
AAFES said overseas gas prices are based on the Department of Energy monthly average for each grade of gasoline in the continental United States plus the unique incremental costs AAFES incurs in each overseas market.
Incremental costs include labor, depreciation and other miscellaneous expenses associated with providing gasoline to AAFES customers overseas.
To establish November prices, AAFES used the two-week Energy Department average from the weeks ending Oct. 16 and Oct. 23.
“In Japan and Okinawa, the price for midgrade gasoline was set at the ‘floor’ selling price,” said AAFES spokesman Master Sgt. Donovan Potter. “The floor price is simply the price at which AAFES buys the fuel, plus the incremental dispensing costs.”
In October, the Defense Energy Support Center at Yokota Air Base set the bulk price for AAFES midgrade at $2.37 per gallon.
“Add the 11 cents per gallon for dispensing costs and it costs AAFES $2.48 per gallon,” Potter said. “However, we get 25 cents per gallon from the government of Japan, earmarked for morale, welfare and recreation. AAFES chose two years ago to pass this along to the customers instead of the coupon discounts we used to issue.”
The price for regular unleaded in Korea also was set at the “floor” selling price, Donovan said.
November fuel prices at AAFES pumps in the Pacific:
Midgrade: $2.232Diesel: $2.338Korea
Unleaded: $2.290Premium: $2.496Diesel: $2.581Guam
Unleaded: $2.279Midgrade: $2.389Premium: $2.499Source: AAFES