Action line 81115 - COLA and fuel Published Nov. 26, 2008 By Anonymous 39th Air Base Wing Public Affairs INCIRLIK AIR BASE, Turkey -- Complaint: We civilians, and I'm sure uniformed members as well, are being hit with a "Double Whammy"! On Sept 27 my post allowance was $184.38 On Oct. 25 it was reduced to $138.32 On Nov. 14 it was further reduced to $46.06 This is a total reduction of 75 percent. I understand Post Allowance is determined by a formula involving COLA at an overseas location versus at a CONUS location. However, one of our larger monthly expenses is gasoline for which we pay about $4.60 per gallon when the CONUS average of $2.22+/- . I suspect the exchange rate has something to do with it but our savings on fruits and vegetables don't cover the cost of fuel. Does anyone know if the cost of fuel is factored into our Post Allowance? Response: Thank you for providing me the opportunity to address your concern on how the U.S. Government calculates Post Allowance. Short answer: The price of gas is only a small factor in the calculation of post allowance (PA). Long answer: Post Allowance is a cost-of-living allowance for employees officially stationed in a foreign area where the cost of living, exclusive of quarters, is substantially higher than in Washington, D.C. This allowance is authorized and set by the U.S. Department of State. The periodic changes in the PA are based on the fluctuations of the currency exchange rate (as has been the case for recent PA reductions for the duty location "Adana-Incirlik") or on the reports submitted biennially to the State Department. These reports do take into consideration the costs for fuel for privately owned vehicles but also considers the prices for food, clothing, medical services, entertainment and the costs of several other goods and services. Fuel is just one of many factors. Obviously, the impact of the currency exchange rate has had a much, much larger impact on our post allowance than the price of gas. A good question: thanks for asking.