03:12 PM PDT on Wednesday, May 5, 2004

By ABE ESTIMADA, kgw.com Staff

Oregon gas prices rose to an average of $2.08 a gallon for regular gas last week, according to the Oregon/Idaho American Automobile Association.

(kgw.com Graphic)

The national average price hit an all-time high of $1.83 per gallon, up 31 cents from last year. At $2.08 a gallon for regular, Oregon ranks No. 4 in the nation for highest gas prices.

With crude oil prices hitting $38 a barrel, there is little expectation for relief at the gas pump, said Elliot Eki, a spokesman for the AAA Oregon/Idaho.

"The current price of crude, the switch to cleaner burning summer gasoline blends, and continued record high demand for gasoline combined with the approaching summer driving season sends a discouraging signal," Eki said.

Oregon gas prices are up an average of 31 cents from last year. The highest prices in Oregon are in the Medford-Ashland area at $2.13 per gallon.

The cheapest gas can be found in the Salem area at $2.05. Across the Columbia River, gas costs $2.02 in Vancouver, Wash.

But as yet, the high fuel prices haven’t seriously curtailed business activity among some merchants and companies whose livelihoods rise and fall with the price of gas.

Though Mother’s Day approaches and demand for flowers is high, Portland Flora in downtown Portland hasn’t raised prices, said Gabriella Cali, who coordinates floral arrangements for weddings and events. The flower shop charges a $7 flat fee for delivery anywhere in the Portland area, no matter the distance.

The delivery service that ships flowers for floral shops around the Portland metro area hasn’t hiked prices because of fuel, so flower dealers have kept their prices the same, she said.

At Rocky Point Marina near Highway 30 off Cornelius Pass, business is up, said owner Rich Tonneson. All 250 boat slips are full. The marina is helping repair boats damaged at other marinas during last winter’s snow storms.

“This is our season, but our sales are up,” Tonneson said.

The cost of taking a boat out for a day on the river is less than a day trip at the Oregon Zoo for a family of four, he said. Tonneson suspects his business may be affected later this summer for boaters who want to take a trip to the San Juan Islands in Canada. Tonneson sells fuel at the marina.

Instead of traveling by ocean, his customers may have their boat hauled overland, he said.

Jon Geffen, general manager alternative fuel vehicles at Ron Tonkin Dealerships in Portland, said business has been brisk for the hybrid car Toyota Prius and other alternative vehicles.

The rising fuel prices haven’t driven more people to buy the Prius lately, he said. Instead, the environmentally conscious market of Portland has kept a steady demand.

“The people that are aware of the use, or misuse, of fossil fuels, they’re able to use less of it,” Geffen said. “There’s far less emission.”

The dealership has also found a market for the Honda Civic electric hybrids, and already, his customers are anticipating General Motors and Lincoln hybrid cars as well as Toyota’s new SUV Highlander, also a hybrid.

Talking to its bus operators, Tri-Met has noticed new riders on the bus, said Mary Festch, a Tri-Met spokesperson. Tri-Met has also heard from non-regular riders who are taking the bus or MAX.

The agency doesn’t track ridership numbers daily nor has it conducted a survey to determine whether people are riding the bus or light rail because of high fuel costs. But “when prices rise, people look at ways to make their gas tank last a little longer,” she said.