VALLEY CENTER, Calif. (KGTV) - A Valley Center gas station owner is reflecting on the impact of the ongoing conflict with Iran on sales and profits.
When asked what word would best describe his feelings on the situation, Dave Bohorquez said, “volatile.”
Bohorquez has owned Valley Center Oil for 16 years, a business that has been in his family for 50 years. He sees the daily financial struggle of his customers firsthand.
Linda Lanotte said it now costs $72 to fill up her Mini Cooper, compared to $55 to $60 before the war.
"Painful when you are on a limited income," Lanotte said.
"We have people coming and literally putting a pile of change on the counter trying to get enough fuel in their vehicle to get to work for the day," Bohorquez said.
The high prices are also hurting the station's bottom line.
"Our sales are down 15 to 20%. Profits are down probably 25 to 30%, because honestly, on a normal day, we make more money on mini mart sales. If people can only afford fuel in their tank to get to work, it affects the bottom line more," Bohorquez said.
The sporadic nature of the global conflict makes managing the business difficult.
"This situation is more difficult to handle because it's sporadic. One day, the news says the strait is open. Wholesale prices fall overnight. I’ve taken a load at a high price, and it takes several days to get rid of it. By the time ready for another load, the strait has been closed again, and the fuel prices skyrocket," Bohorquez said.
”It’s tougher for smaller stations that don’t do as much volume. We can’t drop the prices because of wholesale prices if we’ve got $6,000 in the tank that we paid higher prices for. It’s very hard to grasp where the trend is going and stay ahead of the game," Bohorquez said.
Adding to the financial strain, the next scheduled increase in the state fuel excise tax for gasoline and diesel takes effect soon.
"Adding insult to injury, the state excise tax on July 1 is our next scheduled increase in the state’s fuel excise taxes for gasoline and diesel," Bohorquez said. "Right, we are just holding on, hoping to ride through it.”
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