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Edwards Car Care Center drives for value at the pump

By Alma Pena , Army & Air Force Exchange Service Public Affairs / Published March 15, 2010

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EDWARDS AIR FORCE BASE, Calif. -- According to a recent Short-Term Energy Outlook report from the U.S. Energy Information Administration, "The annual average regular-grade retail gasoline price will increase from $2.35 per gallon in 2009 to $2.84 this year."

Forecasts of increasing energy prices have exchange officials reaching out to drivers to ensure they are aware of the procedures in place to determine pump prices at Edwards Car Care Center as well as the benefits available to authorized exchange customers.

While overall energy prices are beyond the Army & Air Force Exchange Service's control, their MILITARY STAR® Card, for example, can help curb added expenses and save Airmen money when filling up.

"Anytime a customer uses a bank-issued debit or credit card, the retailer pays a portion of the transaction to a third-party financial institution," said Edwards Base Exchange general manager, Russell Hinrichs. "Because the MILITARY STAR® Card is administered by the Exchange Credit Program, our Car Care Center is not subject to the additional fees incurred through other 'pay-at-the-pump' options. As a result, we're able to pass savings on to authorized exchange shoppers by taking a nickel off (the price of) each gallon dispensed."

In addition to the five cents a gallon saving MILITARY STAR® Card holders enjoy every day, Edwards Main Exchange Gas Station also offers steeper discounts, up to 20 cents a gallon periodically.

Drivers interested in learning more about the MILITARY STAR® Card fuel discount can visit the BX or log on to www.aafes.com and click the MILITARY STAR® Card icon for additional details.

Beyond exclusive discounts, AAFES Car Care Centers rely on a survey process to ensure prices are fair and competitive with the local community. Specifically, AAFES conducts daily surveys of at least five locations selling motor fuel, deemed by the local GM to be the competition. Pump prices are then set equal to the lowest price surveyed for each grade of fuel available.

"Because market-based pricing is not contingent on cost, we survey and change prices as frequently as necessary to remain competitive," said Mr. Hinrichs. "In fact, even though AAFES is responsible for charging sales tax on gasoline, the surveys can result in prices that are actually even below cost."

Charging sales tax on fuel can raise the eyebrows of shoppers used to the tax-free benefit that the exchange provides on almost everything, except gas. AAFES and its customers, pay federal tax pursuant to the U.S. code that covers federal tax on gasoline. Therefore, AAFES pump prices include state, federal and local motor fuel taxes along with other applicable fees, that paid to the appropriate taxing authority.

"Gas pricing is a very complex issue, impacted by world markets (as well as) political and economic factors," said Mr. Hinrichs. "With that said, we remain focused on delivering the best value possible to drivers at Edwards Car Care Center."
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