Page "Army and Air Force Exchange Service" Paragraph 84

The Hayden Cartwright Act does require the Exchange to pay these taxes.

Fuel sold to military personnel on military installations is often sold at nearly the same rate as that found at nearby civilian locations, with it becoming increasingly common to find stations in surrounding communities selling fuel for several cents less per gallon.

According to the Exchange, gasoline prices are only marginally cheaper because the individual stores are required to be " competitive " with off-post locales.

In most locations, the exchanges are required to set prices to the exact rate of the lowest civilian rate within a certain number of miles of the installation's boundary, generally within five miles.

Prices will be surveyed at each rate and the lowest price for each rate will be the price set at all fueling stations within that installation, or within that region of the installation in the case of larger installations where identical prices may not be practical.

Prices may be surveyed at a rate determined appropriate for the local installation, up to multiple times per day, but not less frequently than weekly.

Prices may amount to a loss for the exchange ; the Exchange is the only military exchange service permitted to lose money on fuel sales.