Military gas prices in Europe rise, counter to drop in United States
July 5, 2004
Americans in Germany and Britain should consider buying gas coupons on Monday unless they’re driving diesel.
Despite drops in stateside fuel prices at the close of June, U.S. military gas prices in Germany and Britain will rise Tuesday, while diesel prices will drop by about 4 cents in both countries.
In Germany, gas prices will go up from between 4 to 7 cents per gallon, while in Britain, prices at the pump will rise more dramatically — as much 18 cents.
Paradoxically, prices in the Netherlands will go down for all grades by as much as 19 cents. Prices in other countries where AAFES sells gas are unaffected.
A spokesman for the Army and Air Force Exchange Service said he was unaware of the reason for the disparities in the price announcement.
A news release from AAFES said that the service purposefully waited until the first week in July to adjust its monthly prices to better reflect the U.S. price drop. The AAFES prices typically fluctuate based on Energy Department national averages for the previous four weeks. In June’s case, the recovery happened late in the month, so the exchange waited an additional five days so the total average would be lower.
The final price charged by the exchange never falls below its cost, the service says. It can be much higher, according to past exchange statements and documents obtained by Stars and Stripes, because AAFES adds charges for operating costs, subsidies to keep the prices of other staple products in its stores lower than they would be otherwise and to cover payments to a Morale, Welfare and Recration fund.
Prices for July are:
• In Germany, $2.14 for normal unleaded, from $2.07; $2.24 for super-unleaded, from $2.20; $1.88 for diesel, down from $1.91.
• In Britain, $2.17 for super unleaded, up from $2.08; $2.26 for super-plus unleaded, versus $2.08; $1.81 for diesel, from $1.85.
• In the Netherlands, $2.24 for super unleaded from $2.28; $2.33 for super-plus unleaded from $2.52; and $1.93 for diesel, from $1.99.
According to an Energy Department report issued last week, prices should continue to fall at the beginning of this month.
“As we get further into July and especially in August, the situation is not as clear,” it read.
Prices continued to drop slightly over the weekend. According the AAA Daily Fuel Gauge report, regular gasoline sold for an average of $1.896 per gallon in the United States on Sunday, with Saturday’s price being $1.901.