Gas prices surge to highest levels since start of Iran war, squeezing Central Valley businesses

Gas prices have climbed to their highest levels since the start of the war with Iran, raising concerns about prolonged economic strain amid ongoing global supply disruptions.

“It’s becoming a little more worrisome from a pricing perspective,” said Patrick DeHaan of GasBuddy. “The longer the Strait of Hormuz continues to be blocked, the more problems we’re going to be having in the weeks ahead.”

For small businesses in the Central Valley, the surge is already cutting into profit margins. At PDS Plumbing and Air in Clovis, fuel is a daily necessity for crews who rely on a fleet of work vans.

The company, a veteran-owned operation with 50 vehicles that mostly run on gasoline, has seen costs rise sharply in recent months. Daniel Salazar, the director of operations, said the financial impact has been significant.

“March 2025, we spent about $17,000 in gas. Right now, I’m seeing an increase to $36,000 is what I noticed for the month of March,” said Salazar.

One of their vans once cost around $90 to fill; now it costs about $140. Salazar said the spike has forced difficult decisions, including delaying employee raises and increasing prices for customers.

“It’s hard to prepare for something like this, as much as we like to look at numbers and look at forecasts, something like this. This war, no one is prepared for this,” he said.

Data illustrates the broader trend. According to the ABC30 Price Tracker, the average price of gas on the West Coast was $3.66 in January. Last week, that number surged to $5.41.

ABC PRICE TRACKER: See cost of gas, groceries, housing where you live

In the Central Valley, prices are even higher. In Downtown Fresno, regular gas was priced at $6.39 at a Chevron station. A Sinclair station in Clovis was about 30 cents cheaper, while a nearby Valero station was the only one observed with prices below $6 per gallon on Tuesday.

Industry leaders suggest relief may not come soon. Chevron CEO Mike Wirth told Bloomberg he expects it could take weeks, if not months, for prices to stabilize.

For PDS Plumbing and Air, the rising cost of fuel is creating ripple effects beyond transportation. Salazar said the increase is contributing to higher prices for water heaters and HVAC units, adding more pressure on both the business and its customers.

“What we thought was maybe going to last a couple weeks is going on to almost two months,” Salazar said. “It’s definitely affecting us. It’s going to affect many families.”

With costs continuing to rise, Salazar said the company faces tough choices moving forward.

“It’s either raise the prices or close the shop down,” he said.

With warmer temps ahead, Salazar says his busy season is around the corner and advises customers to focus on preventive maintenance to avoid higher prices.

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