Lyft and Uber are adding temporary fuel surcharges to ride and delivery rates as fuel prices rise across the country.
The rise in prices is linked to Russia’s invasion of Ukraine, which has led to a slew of Western economic sanctions against Russia, including US sanctions on Russian oil imports last week and a UK pledge to counter them. fuel from the end of the year to reduce dependence on Russia.
Russia is one of the world’s largest oil exporters, supplying it mainly to Europe and Asia, which have not yet imposed official sanctions on Russian oil supplies. However, the sanctions made oil importers nervous about trying to touch anything Russian, so a de facto embargo was put in place after the invasion, reducing global supplies of natural gas and oil.
In the US, the price of a barrel of oil has risen by more than $80 in recent weeks, with the average driver paying about $4,325 a gallon on Monday, according to the American Automobile Association. A year ago, the average was $2,859. In states like California, which have the highest taxes in the country, drivers see an average price of $5,744.
On Friday, Uber said riders will now pay $0.45 to $0.55 per ride and $0.35 to $0.45 for Uber Eats deliveries. The company said the fees, which will be in place in the US, Canada, New Zealand and Australia, will last at least two months and are subject to adjustment based on feedback from drivers, couriers and consumers.
In the US, surcharges apply across the country, with the exception of New York City, where drivers based on the city’s mandated minimum income standard received a 5.3% raise effective March 1, which Uber says will increase operating costs. In addition, according to Uber, most delivery drivers in New York use bikes, not cars. It’s unclear what other markets will be affected by the surcharge, but Uber told gaming-updates it’s considering several different countries.
On Monday, Lyft joined Uber in adding an additional charge for rides, according to The Verge. Like Uber, Lyft says it will pay all driver surcharges aimed at alleviating the burden of higher prices, not just covering all gas costs.
The Uber copay also applies to EV rides. Lyft has not confirmed to gaming-updates whether it will have a similar policy, how much the surcharge will cost, or which markets will be affected.
“We are closely monitoring rising gas prices and their impact on our driver community,” Lyft said in a statement. “Drivers’ earnings generally remain higher than last year, but given the skyrocketing gasoline prices, we will ask drivers to pay a temporary fuel surcharge that will go to all drivers. We will share more details soon.”