AAFES gas prices stay competitive Published April 14, 2005 FAIRCHILD AIR FORCE BASE, Wash. -- It seems that every week people have to dig a little deeper into their pockets after filling up at the pump.The Army Air Force Exchange Service wants you to know that they stay competitive with outside the gates gas prices striving to bring Department of Defense patrons the lowest prices possible in their respective geographical areas.In the [Continental United States], we perform weekly surveys nation-wide of at least five local service stations near a military installation, said Judd Anstey, media branch manager for Corporate Communications Division, Headquarters AAFES. The local AAFES general manager identifies the competition, and establishes the AAFES price equal to the lowest price surveyed in the area. Overall, AAFES gas prices are fair and competitive with the local community, yet allow enough income to cover operating expenses and generate monies for the installations Morale, Welfare and Recreation program.World-wide, Soldiers, Airmen and their families can enjoy free or inexpensive MWR programs because of the subsidy AAFES earnings provide. A large percentage of AAFES net operating profit goes back to the military community. AAFES does not keep any of the earnings generated. It's all returned to the forces through either MWR contributions to support child development centers, recreation centers, and the like, or capital improvements at exchange level, such as shopping centers, 24-hour shoppettes, Burger Kings, Taco Bells, PowerZones, etc.Like anything else AAFES sells, roughly two-thirds of the profit from gas is returned to military communities in the form of MWR dividends, Mr. Anstey said. In the past 10 years, $2.24 billion has been contributed by AAFES to the Army and Air Force to spend on quality of life improvements for Soldiers, Airmen and their families.According to the AAA, the average price of gas nation-wide fell to $2.26, after nearly one month of consecutive record breaking gas prices.Pump prices are expected to keep rising through the Memorial Day holiday weekend in May, the beginning of the busy U.S. summer driving season, according to the Energy Information Administration.Its fair to say that most of the bases military, civilian employees and residents seek the gas pumps on Fairchild rather than off-base because of the lower prices and convenience.I normally get gas on base because it is usually cheaper than off base, said Senior Airman Stacey Wiley, a claims paralegal for the 92nd Air Refueling Wing legal office. Even though it may only be a few cents cheaper -- every little bit helps. I feel that AAFES tries to support us the best they can without loosing money themselves.AAFES overseas gasoline prices are established using a market-based pricing strategy. This policy utilizes the CONUS Department of Energy monthly average for each grade of gas, plus local incremental dispensing costs. Prices are calculated based on a four- or five-week average, by grade, from the preceding months DOE reports. In no case will motor fuel prices be set below local dispensed cost. Incremental dispensing costs are those local costs AAFES incurs above the U.S. cost to dispense gasoline."In Fiscal Year 2004, AAFES earned $344.5 million from direct sales (retail, food and vending/services), finance revenue and concessions on revenues of $7.9 billion. MWR and services programs world-wide received $242.3 million, Mr. Anstey said. The per capita dividend in 2004 was $277 for every Soldier and Airman."Thats beneficiary for service men and women not to mention the savings they see at AAFES gas pumps around the globe.Editors notes: Some information from this article was provided from the AAFES Web site. Air Mobility Command News Service is a service of the Internal Division Office of Public Affairs 503 Ward Drive, Room 214 Scott Air Force Base, Illinois 62225-5335 618-229-7821