Ride-hail driver Kuljeet Singh from Vancouver experiences anxiety every time he refuels his vehicle, as he watches the rising costs at the gas pump with trepidation. The recent surge in global gas prices, triggered by military actions in the Middle East impacting shipping routes, has put a strain on drivers like Singh who spend long hours on the road. The current average gas price in Canada, as reported by Gasbuddy.com, stands at approximately 168.1 cents per liter, with British Columbia recording even higher prices at 187.3 cents per liter.
Singh, also the director of the Ride Hailing Driver Association of B.C., estimates an additional $20 to $25 expense every time he fills up his car, which he needs to do every few days while working for Uber and Lyft. This translates to an extra $150 to $200 spent monthly to operate in downtown Vancouver. Many drivers, including Singh, are contemplating longer work hours to cope with the escalating gas costs.
Despite Canada’s self-sufficiency in oil production, the interconnected nature of the global crude market means that domestic prices are affected by international events. Joe Calnan, vice president of energy at the Canadian Global Affair Institute, explains that disruptions in the global oil supply chain impact prices locally. As tensions persist in the Middle East, gas prices are expected to continue rising.
The upward trend in gas prices is hitting ride-hail drivers hard, especially those already facing financial challenges due to slim profit margins. Earla Phillips, vice president of the Rideshare Drivers Association of Ontario, highlights the plight of drivers struggling to cover expenses like car payments and rent, with some turning to food banks for support. While government initiatives in Ontario and B.C. aim to protect gig workers, concerns persist about the adequacy of these measures in ensuring fair pay and safety.
Phillips shares her personal struggle with the soaring gas prices, opting to limit her fuel purchases to essential amounts to manage costs. She emphasizes the need for platforms like Uber and Lyft to consider implementing fuel surcharges for riders during periods of high gas prices to alleviate the financial burden on drivers. The importance of maintaining a balance between driver costs and rider pricing is crucial for the sustainability of the ride-hailing industry.
In the absence of effective interventions to address the escalating gas costs, drivers like Abdul Jaber are contemplating alternative sources of income to sustain their livelihoods. Jaber foresees many drivers exploring different job opportunities outside of ride-hailing to cope with the financial challenges posed by the current gas price crisis.
