Higher pump prices have impact on Bend HVAC business

(Update: Adding video, comments from AAA Oregon/Idaho, Bend HVAC business)

According to AAA, Oregon had the biggest weekly jump of any state in the nation

BEND, Ore. (KTVZ) -- Rising gas prices are impacting just about every sector of daily life.

“We are up 10 cents in the last week -- our current average in Oregon is $4.58 a gallon," AAA Oregon/Idaho Director of Government and Public Affairs Marie Dodds said Wednesday. "In Bend, our current average is $4.65. That’s up a nickel in the last week."

In general, Dodds maintains prices often tend to be higher in areas that are popular with tourists, such as Central Oregon. In addition, it can cost more to transport the product there.

In the most recent history however, Dodds points out there have been larger increases in gas prices, with some jumps on a weekly basis as much as 25 cents.

But even incremental increases have an impact on businesses using a lot of fuel.

"We try to minimize back and forth trips, so we route our service techs and our installation teams so they stay in one area of the city," Mountain View Heating General Manager Scott Bellefeuille said.

The HVAC company serves Deschutes County and has about 30 gas-powered trucks in its fleet. Typically, fuel costs the business around $4,300 a month.

A year ago, the company added an electric vehicle, to minimize costs.

"That little hybrid electric vehicle that we purchased has saved us easily $500 a month in fuel," Bellefeuille said.

It also operates electric-based machines.

“It has saved us quite a bit in fuel in our warehouse," Bellefeuille said. "We also have a picker which is electric now, and so we’ve gone away from propane and gas for our forklifts.” 

But even with the changes, the business still deals with a lower profit margin and has raised the flat rate for customers to around $160 to help offset the surge in gas prices and higher cost of supplies.

In regards to the gas price surge, AAA points to the issue of supply.

"We are seeing prices rise right now because we’re seeing a bit of a crimp of supplies here in the Pacific Northwest," Dodds said. "I think we will get to a point this summer where prices will settle down and maybe even decline a little bit.” 

Additionally, gas prices also rise in spring because stations switch to a summer blend fuel, which is more environmentally friendly, but also more costly.

Hurricane-related weather can also raise gas prices if it impacts drill production or refining areas such as the Gulf Coast. National and international events, as we’ve seen with the war between Russia and Ukraine, also play a role.