25 September 2006

More AAFES Ranting

Drudge has an image of a gas station having prices below $2 per gallon.

Current price of the cheapest AAFES gas in Germany? $3.16 per gallon. Want to have an octane level comparable to lowest octane of US? $3.26 per gallon.

Can anyone help AAFES explain this?

For review: AAFES sets gas prices monthly. It's allegedly based upon the Department of Energy's average price of gas for the previous four weeks.

(Note: The DOE average includes taxes - something AAFES promises us we do not pay.)

AAFES then adjusts the price further to compensate for the costs of administering its fuel coupon program and to offset prices on other products (it often uses diapers as an example).

My question is: How can AAFES manage their business? Any gas station in the US changes prices frequently, often several times a day. It's supply and demand at work. How can you manage and plan your business based on hoping that your cost of doing business doesn't fluctuate too much? I'll translate: Right now, AAFES is making a killing because gas prices have dropped yet they are maintaining high costs. Good for them. However, what about when it's the other way around (it has been known to happen)? Can you really ride out a whole month waiting for the opportunity to raise your price to match the cost of business? That's insane!

Eagerly awaiting 01 October so I can start saving money. All of this driving has put a serious dent in the ol' wallet... When Ellicia was in the hospital, I was putting between $80-$100 a day into the gas tank.

But hey, the diapers are cheap...

4 comments:

Anonymous said...

Last time I filled up, I paid $2.47 on my way home from work. The next morning the price was $2.35 - today it's $2.15. I still have half a tank of gas. Advantage of living in a small town about a mile from your work. Hope it's still low when I need to fill up again.

Anonymous said...

I'm trying to feel for you - I really am. But since I pay about $6 a gallon on the economy here I'm having some difficulty ;-)

Let me know if you go to LRMC again. I'm there several days a month.

Unknown said...

$2.11 today on Dover AFB. Not my usual haunt but I had to be there for a class. Of course I couldn't take advantage because I saved my gas and took a GOV.

Anonymous said...

$2.26 here in SE Wisconsin. Was $2.45 about 10 days ago. It's dropping fast. I am not complaining as the highest we went was $3.29. That's a HUGE difference.

I live out in the "country" so public transportation is not an option and to get "anywhere" is minimum 15 minute drive. Usually more like 30. It was KILLING the budget!