27 February 2006

AAFES Raising Gas Prices, Again

Stars and Stripes reports that AAFES is raising the gas prices in Germany next month by 2 cents per gallon.

In the article, it says that AAFES' press release says the price is based on the Department of Energy's national price surveys through 20 Feb rising to $2.30 from $2.28 the previous month. Then the cost of dispensing gas in a foreign country is added on.

Uh huh.

So this month, it's "the cost of dispensing gas in a foreign country."

Let's take a peek, shall we?

First, there's this article on MSNBC that gas prices DROPPED as of 21 Feb. The reference? The Department of Energy's Energy Information Administration.

And it is still interesting that AAFES, which is supposed to provide services tax-free, bases it's prices on an average which includes taxes.

Anyway, my monthly rant on being ripped off by our friendly, local government monopoly.

6 comments:

Anonymous said...

We can get it in places at $2.14 here.

Anonymous said...

AAFES sucks in many ways, it appears.

Unknown said...

Gas was $2.12 yesterday here at NAVSTA Newport RI.

Anonymous said...

I gotta move east. Here in CA it's still in the $2.50+ range.

Anonymous said...

I get so tired hearing people complain about the gas prices in Germany. I have to ask would you rather pay the prices they pay on the economy? My second question is, do you use the gas coupons that can be used at many stations across Europe? How do you think that program is paid for? Do you think it is a free program paid for by tax payers for your convenience?
I have another comment about people complaining about AAFES in general. No, it may not a perfect company... (name one that is) but what other company would work with the military community, under military rules and work with old buildings the military supplies them, and open a store? What other company would employ military dependants as a first priority, even though these people transfer constantly, and in some cases would never make it in any other retail outlet? What other company would give most of thier earnings back to the Military to build Gyms, Libraries, Bowling Alleys, Swimming pools, and a host of other ammenities that most military members, DOD Civilians and contractors take for granted. What other company do you know that would open stores in a war zone, have employees volunteer to run them, and truck drivers who risk thier lives and some who have lost thier lives so you can get your double stuffed oreos when you want them? Do you really think WalMart would take better care? Think again my friend. So before you complain about all the little things that are wrong with AAFES, think of all the really great things they do everyday to help troops around the world!

Anonymous said...

Anonymous - You'd do well to look a little more deeply into the coupon program. The coupons are printed, paid for, and handled by Esso as part of their contract with AAFES. AAFES pay the €.75 or so a liter in German taxes (€2.81 a gallon or $3.68 at the 22 April exchange rate), and because of the quantities involved they get a tidy discount on the per-liter price they do pay.

I particularly love it when AAFES cites "dispensing costs" as part of their price justification. I use Diesel fuel and as far as I can tell after 16 years in Germany there isn't a single AAFES station that actually dispenses Diesel. Worse, Diesel runs a dime or more a gallon higher than super unleaded even though the sale price is lower than gasoline downtown and includes a higher tax rate.

Your comment about the cash turned over to Services is correct, AAFES does do that. And yet Services/MWR is widely known for their "what the traffic will bear" pricing. You also have me on the stores downrange. However, between when I enlisted in 1968 and today, "downrange" has only been a factor for a very small number of those 38 years. AAFES pricing structure has changed very little, whether there is a "downrange" or not.

On the other hand, AAFES jobs are mostly minimum wage with less than desirable conditions because AAFES can get away with it.

When you walk into most stores, who owns the merchandise? The store, at least until you pay for it. In AAFES, zero percent belongs to the store. It is all owned by (and placed on the shelves by) the vendors. AAFES merely provides shelf space and rakes a percentage off the top.

The vendors often handle only a few manufacturers' merchandise and don't have a large staff. So when something is returned, it is returned to the vendor who in turn drops it in a dumpster without so much as testing it. I personally pulled eleven Hoover vacs out of such a dumpster: one broken belt, one burnt out motor (no, it won't run very long on 220V) and the other nine - no problem at all excepting that when it got home Hubby probably said it was too expensive and told his frau to take it back and say something was wrong with it. The average retail price on these machines was a tad over $100, so we're talking about over a grand worth of machines and a two dollar belt (we'll write off the burnt motor). And how do you suppose this loss is covered? I'll bet it doesn't come off of AAFES bottom line.

Always Another Flimsy Excuse - Sorry!