Edwards AFB Express drives for value at the pump

  • Published
  • By Rebecca Silva
EDWARDS AIR FORCE BASE, Calif. --  According to gasbuddy.com, gas prices could dip to below $2 a gallon by Thanksgiving. As the cost continues to plummet, the Exchange wants to ensure drivers are aware of the procedures in place to determine pump prices at Edwards and the benefits available to authorized shoppers.

The MILITARY STAR card, for example, is the quickest and easiest way to get the lowest pump price possible as drivers receive 5-cents-a-gallon savings with every fill-up. In addition to the nickel savings, the Edwards Express periodically also offers steeper discounts during certain holidays.

"Anytime a customer uses a bank-issued debit or credit card, the gas station pays a portion of the transaction to a third-party financial institution," said the Exchange's General Manager Charles Eaves. "Because the MILITARY STAR card is administered by the Exchange Credit Program, our Express is not subject to the these additional fees. As a result, we're able to pass savings on to cardholders by taking 5 cents off each gallon dispensed."

Beyond exclusive discounts, Exchange Expresses rely on a survey process to ensure prices are fair and competitive with the local community.

Specifically, the Exchange conducts daily surveys of at least five local gas stations. Pump prices are then set equal to the lowest price surveyed for each grade of fuel.

"Because market-based pricing is not contingent on cost, we survey and change prices as frequently as necessary to remain competitive," said Eaves.

Charging sales tax on fuel can raise questions for shoppers used to the tax-free benefit that the Exchange provides on almost everything, except gas.

While the Exchange, which is part of the Department of Defense, is immune from state and local taxes, the immunity specific to fuel has been waived by Congress (Hayden Cartwright Act, 4 U.S.C. 104). The Exchange, and by extension its customers, also pays federal tax pursuant to the U.S. code that covers federal tax on gasoline (26 U.S.C. ยง 4081(a)).

Accordingly, Exchange pump prices include state, federal and local motor fuel taxes, as well as underground storage fees, etc. The federal and state taxes, as well as other applicable fees, are included in the price and paid to the appropriate taxing authority.

"Gas pricing is a very complex issue, impacted by world markets, political and economic factors," said Eaves. "With that said, the Exchange is doing everything within its power to deliver the best value possible to drivers at Edwards."