AAFES gas prices capture people's attention Published Aug. 11, 2008 By Col. John Stutts 354th Mission Support Group commander EIELSON AIR FORCE BASE, Alaska -- The Army and Air Force Exchange Service gas prices are a subject that many members of the Eielson community are concerned with. The price of gas at all AAFES outlets is set by official policy based on the laws established by Congress. These rules can not be changed or modified by our local exchange managers. Another consideration is that the price of gas is set differently for installations overseas than for CONUS bases. Remote locations such as Eielson are required to base their gas prices on a survey of prices in the nearest community. Here at Eielson, that would be North Pole. Our AAFES managers do survey continuously during the week to ensure their prices are set equal to the lowest price they legally can. They can not use Fairbanks prices to set the sale price of gas at Eielson. Unfortunately, North Pole has a higher tax on gasoline than Fairbanks, contributing to gas prices being higher on Eielson than in the Fairbanks community. Many military exchange customers are asking, "Since the military exchanges are exempt from taxes, why isn't the price of gas on military bases cheaper?" While AAFES facilities do not have to pay federal, state and local taxes for the vast majority of merchandise they sell, they are required by law to pay gasoline taxes. The Hayden Cartwright Act requires AAFES outlets to pay all taxes, including local taxes, on gasoline, and they also must pay other costs, such as distribution expenses and underground storage fees. Hopefully the price of gasoline will go down soon, but in the meantime it may well be cheaper for patrons to purchase their gas elsewhere. For more information on AAFES gas prices, please contact the exchange manager at 377-4154.