Gig Workers Face Pain at Pump as Gas Prices Hit 21-Month Highs

Gig workers feel the pinch as gas prices reach 21-month highs, impacting earnings and forcing adjustments. Learn how drivers are coping.

For over a decade, Alvaro Bolainez has driven passengers around Los Angeles as a rideshare driver. He notes that gas prices have never changed as rapidly as they have this month, describing the situation as “insane.” The surge in prices appears to have followed the U.S.-Israeli strikes on Iran, prompting Bolainez to avoid shorter rides to maintain profitability. He shares strategies with other drivers in online forums to help them navigate these rising costs.

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Bolainez is part of a vast network of Americans who earn income through gig-economy jobs like deliveries and ride-hailing. Since these roles typically require a personal vehicle, these workers are disproportionately affected by the sharp increase in oil prices. “If we don’t drive, we won’t be able to afford to pay rent or pay bills,” Bolainez stated, emphasizing the necessity of continuing to work despite the financial strain.

The average price for unleaded gasoline has climbed 22% in the past month, reaching approximately $3.59 per gallon as of Thursday, according to AAA. This national average marks the highest point since May 2024. Bespoke Investment Group reported that gas prices saw their largest three-day increase last week since Hurricane Katrina. Kevin Gordon of the Schwab Center for Financial Research noted that this month has experienced the steepest 10-day price spike on record.

“For a segment of gig workers, increasing gas prices are not only immediately painful, but also can sort of inject some fear in their day to day,” said Elizabeth Renter, senior economist at a financial education platform. This sentiment highlights the immediate financial pressure and underlying anxiety faced by those reliant on driving for their income.

Changing Course Amid Rising Costs

Bolainez is not alone in the gig economy; many are actively adjusting their strategies as expenses escalate. Adrian Mussio, a food courier for platforms like DoorDash and Uber Eats, is meticulously calculating trip profitability. She reminds others that tips become even more crucial when pump prices rise. Mussio has also begun exploring online gig opportunities to supplement her income should costs remain high long-term.

Additionally, Mussio is opting to walk for short personal errands instead of using her car. She utilizes apps like Gasbuddy to find the lowest prices and redeems grocery store loyalty points for fuel credits. “I believe we’re in this for a good while,” Mussio commented. “We have to adjust.”

Patrick De Haan, head of petroleum analysis at Gasbuddy, reported that the app’s daily active user count has more than doubled recently, with users spending over 30% more time on the app. This indicates a heightened focus on fuel prices among consumers.

Relief may not be imminent. Crude oil prices remain volatile due to geopolitical tensions. Furthermore, the upcoming spring break travel period and the transition to more expensive summer-blend gasoline typically drive price increases. De Haan estimates a 55% probability that the average gallon price could reach $4.

Cost Questions and Policy Changes

If gas prices do not decrease soon, some gig workers are considering or hoping for significant policy changes from the companies they contract with. Bolainez, who is also vice president of the advocacy group Rideshare Drivers United, advocates for platforms to implement an additional gas surcharge. Similar surcharges were introduced by several companies in 2022 when gas prices surged above $5 per gallon following Russia’s invasion of Ukraine.

A DoorDash spokesperson confirmed the platform offers various discounts for drivers. Uber, Lyft, Instacart, and GrubHub did not immediately respond to inquiries regarding driver resources or potential policy adjustments. Ashley Manka, who runs a laundry business and drives up to two hours daily, is contemplating adding a $5 fee for longer-distance pickups to offset increased fuel costs.

“Everybody wants to keep costs low,” Manka said. “Whenever it’s out of your control, it just gets really frustrating.”

A ‘Deeply Unstable’ Position

Estimates suggest that between 2% and 4% of the U.S. population participates in the app-based gig workforce, with projections indicating annual growth of 5% to 8%, according to Goldman Sachs. Data from ADP in 2024 indicated that temporary workers and independent contractors generally earn less per month than traditional employees, partly due to fewer average hours worked.

Pew Research Center’s 2021 survey revealed that gig platform workers are more likely to be younger, lower-income, and belong to minority groups. For these individuals, the current surge in gas prices adds to a series of financial challenges experienced over the past few years. Auto insurance prices and repair costs have also risen significantly since the pandemic, according to NerdWallet’s Renter. Additionally, President Donald Trump‘s tariff policies on imports may contribute to higher car part expenses.

Compared to the 2022 gas price shock, gig drivers might find it more difficult to secure alternative employment in the current, relatively tighter labor market. Lindsey Cameron, an assistant professor of management at the University of Pennsylvania, noted that app-based drivers lack the ability to unilaterally increase their rates like other contractors when costs rise. “This type of work is deeply unstable,” Cameron stated, adding that rising gas prices “exacerbates their precarity.”

‘Every American Is Going to Feel This’

Shannon Hillock, a freight dispatcher for owner-operators, views the challenges faced by truckers due to oil prices as an indicator of broader economic impacts. She helps independent truckers negotiate jobs, but notes that the financial calculations have drastically changed. Diesel prices have surged over 35% in 2026, outpacing the 26% increase in unleaded gas over the same period, based on a CNBC analysis of AAA data.

“High fuel prices are one of the most detrimental parts of the equation,” said Hillock, whose family includes several truck drivers. “Your profits are being just sucked away at the fuel pump.” She anticipates that drivers, already operating on thin margins, will need to raise their rates to cover fuel expenses. Gasbuddy’s De Haan forecasts a 70% chance of diesel prices reaching $5 per gallon.

Consequently, Hillock warns that consumers should expect these increased costs to be passed on through higher prices for groceries and retail goods. “Truck drivers are facing the brunt of it,” Hillock stated. “But it is something that they are not going to shoulder alone. Every American is going to feel this.”

Gig workers discuss the impact of rising gas prices on their income and daily lives.
Gig workers are facing significant financial pressure due to the rapid increase in gasoline prices.

Fonte: CNBC


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