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Gas Price Surge Squeezes Workers Who Drive for a Living
Leslie Sherman-Shafer begins each shift as an Uber driver in the San Francisco Bay Area with a full tank of gas—a routine that has become increasingly expensive since the Iran conflict began. What once cost her $25 to fill her Toyota Corolla now costs closer to $40, reflecting the $1 increase in the average U.S. gas price per gallon.
“We don’t get reimbursed for gas. We rely on the generosity of the tip,” said Sherman-Shafer, a retired dental office assistant who now drives for Uber five days a week. She’s been forced to work extra hours to cover the difference, noting that while some passengers have increased their tips, most don’t tip at all.
The financial strain is being felt by millions of Americans who use personal vehicles for work. According to the U.S. Bureau of Labor Statistics, nearly 27% of civilian workers cited driving as a physical demand of their jobs last year. This includes ride-share drivers, delivery personnel, self-employed contractors, nannies, health care aides, and real estate agents.
As the conflict enters its fifth week, disruptions to global oil supplies continue to drive prices upward. The national average reached $3.99 per gallon on Monday, a 34% increase from just a month earlier, according to AAA. For many workers dependent on driving, this spike has created a significant financial burden.
“With everything going up, it’s impossible to save a dime,” Sherman-Shafer remarked.
Some businesses compensate employees who use personal vehicles based on the Internal Revenue Service’s standard mileage rate, which is 72.5 cents per mile for 2026. Alpine Maids, a Denver-based housekeeping company, pays its cleaners this rate for travel between clients’ homes. But owner Chris Willatt acknowledges that even this reimbursement isn’t keeping pace with rapidly increasing fuel costs.
“Our maids drive their own cars, so it’s kind of like their paycheck got smaller,” Willatt said. “They’re all upset.”
To mitigate the impact, Willatt has reduced how often employees must report to the office and reorganized cleaning assignments to minimize driving distances. If prices continue to rise, he may need to increase customer rates to better compensate his workers.
Other businesses are taking similar measures. Molly Kenefick, owner of Doggy Lama Pet Care Inc. in Oakland, California, recently increased her gas reimbursement to 80 cents per mile for the 15 employees who use personal vehicles to transport dogs around the Bay Area. The higher rate will remain in effect until regional gas prices fall below $5 per gallon for at least a month.
While Kenefick plans to raise her service prices in May, she’s concerned about losing clients if prices rise too sharply. As a compromise, she’s currently supplementing reimbursements from her personal savings. “The economy is hard for people. Everybody’s under strain,” she said. “I can take some of the load and the company can take some of the load, provided this doesn’t go on too long.”
Gig economy platforms like DoorDash, Uber, Lyft, and Instacart don’t typically reimburse drivers for fuel but have introduced temporary incentives in response to the price surge. These include enhanced cash-back offers on gas purchases made with company-branded debit cards and weekly fuel payments for drivers who exceed certain mileage thresholds.
For Sarah Noell, who delivers for DoorDash about 20 hours weekly in Lynchburg, Virginia, these measures provide some relief, but she’s noticed fewer customers adding tips as gas prices climb. She’s adapted by refusing orders that won’t yield at least $1 per mile, including the base payment from DoorDash.
“It takes nearly double the cost to fill my tank,” Noell explained. “Ten dollars used to get me a decent amount. Now it only gets me 3 gallons.”
Diesel vehicle operators face even steeper increases. The average U.S. diesel price has surged 44% over the past month, according to AAA. This has sparked protests internationally, including a two-day strike by drivers of diesel-powered “jeepneys” in the Philippines and demonstrations by truck and bus operators in France.
Rachel Hunter, co-founder of Cactus Crew Junk Removal & Thrift Store in Phoenix, has seen diesel prices for her business truck jump from $3.62 to $6.09 per gallon. With a vehicle that only gets 12-13 miles per gallon while hauling heavy items, fuel costs quickly accumulate.
Hunter has begun adjusting her price quotes to reflect the increased expenses, but worries about the long-term consequences if oil prices remain elevated. “We don’t want to get a bad name for being overpriced,” she says. “I’ll be able to explain it where people can understand, but it doesn’t mean they can afford it.”
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13 Comments
It’s unfortunate to see how the rise in gas prices is squeezing workers who rely on their personal vehicles for their jobs. This issue spans many industries, from rideshare to healthcare. I hope policymakers and employers can come up with solutions to help support these essential workers during this difficult time.
The impact of surging gas prices on workers who drive for a living is really troubling. As someone who has done rideshare driving, I know how razor-thin the profit margins can be. Even a small increase in fuel costs can make a big difference. I hope some relief comes soon for these essential workers.
Agreed. This issue goes beyond just rideshare and delivery drivers – it affects a wide range of professions from healthcare to real estate. These workers need support, whether through subsidies, mileage reimbursements, or other measures to help offset the higher fuel costs.
This is a really tough situation for workers who drive as part of their jobs. Whether they’re rideshare drivers, delivery personnel, or in other professions, higher gas prices directly impact their bottom line. I hope we see some creative solutions, whether from employers, policymakers, or consumers, to help offset these rising fuel costs.
Agreed. The ripple effects of this gas price surge could be quite severe, especially for workers in lower-wage jobs with less flexibility. Finding ways to provide relief, whether through subsidies, reimbursements, or other measures, is crucial to supporting these essential workers.
This is a tough situation for workers who drive for a living. Higher gas prices cut directly into their already tight profit margins. Rideshare and delivery drivers especially feel the pinch, with no reimbursement from their employers. I hope some relief comes soon for these essential workers.
You’re right. Even a small increase in gas prices can make a big difference when your income is so dependent on fuel costs. These workers need some assistance or flexibility to offset the higher expenses.
This is a concerning trend. Higher gas prices put a real squeeze on workers who rely on their vehicles for their livelihoods. Ride-share drivers, delivery personnel, and others in the gig economy are especially vulnerable. I hope we see some solutions, whether government assistance or better compensation from employers, to help offset these rising costs.
It’s unfortunate that workers who drive for a living are bearing the brunt of this gas price surge. As an Uber driver myself, I know how thinly-stretched the profit margins can be. Even a small increase in fuel costs can make a big difference. I hope the situation stabilizes soon for the sake of these essential workers.
I share your concern. Rideshare and delivery drivers are in a uniquely vulnerable position when gas prices rise. They have little room to absorb those higher costs. Hopefully there will be some relief, whether from employers, policymakers, or consumers in the form of better tips.
It’s concerning to see how widespread the impact of rising gas prices is, affecting millions of Americans who rely on their personal vehicles for work. This issue goes beyond just rideshare and delivery drivers – it impacts a wide range of professions from healthcare to real estate. Some creative solutions may be needed to help support these workers.
Absolutely. The ripple effects of higher gas prices could be quite severe, especially for workers in low-wage jobs with limited flexibility. I hope policymakers and employers can find ways to provide relief, whether through subsidies, mileage reimbursements, or other measures.
This is a really concerning trend for workers who rely on their personal vehicles for their jobs. Rideshare drivers, delivery personnel, healthcare workers, and others are all feeling the squeeze of higher gas prices. I hope we see some solutions, whether from employers or policymakers, to help offset these rising fuel costs for essential workers.