For Leslie Sherman-Shafer, who drives for Uber in California’s Bay Area, every work shift begins with filling her gas tank to the brim.
What once cost approximately $25 to fuel her Toyota Corolla now runs close to $40 since the conflict in Iran started, driving up regular gasoline costs across America by $1 per gallon. The retired dental assistant, who transports Uber customers five days weekly, now works additional hours to offset the increased expenses.
“We don’t get reimbursed for gas. We rely on the generosity of the tip,” Sherman-Shafer explained. While some riders have increased their tips to help with higher fuel costs, most passengers don’t tip anything at all, she noted.
Operating cars, vans, or trucks represents a significant component of countless American jobs. Data from the U.S. Bureau of Labor Statistics shows nearly 27% of civilian employees identified driving as a physical requirement of their work last year. Countless workers depend on personal vehicles for employment, including delivery drivers, rideshare operators like Sherman-Shafer, independent electricians, childcare providers, healthcare workers, and property sales professionals.
With the conflict now in its fifth week and continuing to impact worldwide oil distribution, many of these employees are struggling financially. AAA reports the national gas price average hit $3.99 per gallon Monday, representing a 34% increase from the previous month.
“With everything going up, it’s impossible to save a dime,” Sherman-Shafer stated.
Certain employers provide compensation for workers using personal vehicles, covering fuel expenses. The Internal Revenue Service establishes an annual standard mileage rate for businesses and independent contractors to calculate tax deductions. Alpine Maids, a Denver-based cleaning service, compensates their staff using the 2026 federal rate of 72.5 cents per mile for travel to customer locations.
However, with fuel prices surging, that compensation doesn’t stretch as far, explained Chris Willatt, a former geologist who operates Alpine Maids.
“Our maids drive their own cars, so it’s kind of like their paycheck got smaller,” Willatt noted. “They’re all upset.”
Willatt has reduced mandatory office visits from daily to weekly and reorganized cleaning schedules to minimize travel distances between appointments. Should gas prices continue climbing, he’s considering raising customer rates to increase worker compensation.
Molly Kenefick, who owns Doggy Lama Pet Care Inc. in Oakland, California, recently increased her gas reimbursement to 80 cents per mile for 15 staff members who transport dogs for Bay Area hiking services. This rate increase will remain until local gas prices stay below $5 for at least 30 days, she said.
Kenefick plans to increase service prices in May but wants to avoid excessive increases that might drive away customers. She’s also using personal savings to cover gas expenses.
“The economy is hard for people. Everybody’s under strain,” she observed. “I can take some of the load and the company can take some of the load, provided this doesn’t go on too long.”
Rideshare and food delivery companies that depend on gig workers don’t provide gas reimbursements, though some offer temporary incentives responding to rising fuel costs. DoorDash, Uber, Lyft, and Instacart are providing enhanced cash back on gas purchases for drivers using company debit cards. DoorDash and Instacart offer weekly fuel payments for drivers traveling 125 miles or more during deliveries.
Sarah Noell, who dedicates roughly 20 hours weekly to DoorDash deliveries in Lynchburg, Virginia, said these programs provide some relief. However, she’s observed more customers removing tips from orders as gas prices increase.
Noell now rejects any delivery that won’t average $1 per mile, including the $2.50 per order from DoorDash. This eliminates many non-tipping customers or those providing minimal tips.
“It takes nearly double the cost to fill my tank,” Noell said. “Ten dollars used to get me a decent amount. Now it only gets me 3 gallons.”
Diesel vehicle owners have experienced even sharper fuel price increases since the war began February 28, affecting drivers globally.
Philippine drivers of diesel-powered “jeepneys” staged a two-day strike last week protesting increased operating costs. In France, dozens of buses and trucks moved slowly on Paris ring roads Monday demonstrating concerns about diesel price increases. Drivers and businesses are seeking government assistance to address the impact.
“The major difficulty right now is finding our balance on our business since we sold services with the vehicles at a certain price for diesel that was much cheaper. And we’re not going to ask customers to pay that difference,” Sarah Bahezre, manager of bus company Ulysse Cars, told The Associated Press.
AAA data shows average U.S. diesel prices increased 44% over the past month.
Several weeks ago, Rachel Hunter paid $3.62 per gallon to fuel the single diesel truck for Cactus Crew Junk Removal & Thrift Store, a Phoenix business she co-founded with her husband. AAA reports that same fuel now costs $6.09 per gallon in Phoenix.
The truck hauls various heavy materials, from solid maple bowling lane slabs to concrete paver tile loads. Fuel expenses accumulate rapidly, Hunter explained, especially with a vehicle achieving only 12 or 13 miles per gallon.
Hunter now provides price quotes reflecting the fuel cost increases. She fears being caught in a “vicious circle” that could damage the business if oil prices stay 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.”
