Ride-share company Uber announced customers can expect to pay a fuel surcharge after gasoline prices hit record highs.
The technology company announced the new fee on Friday in a response to concerns from drivers.
Beginning on March 16, customers can expect to pay 45 cents or 55 cents on each Uber trip. Uber Eats deliveries will be marked up by an additional 35 cents or 45 cents. The fees vary based on location.
Uber users in New York City are exempt from the new charge.
“On March 1, drivers in New York City received a 5.3% increase to the city’s mandated minimum earnings standard, which accounts for increased operating costs, and the vast majority of NYC delivery workers use bicycles, not cars,” the company announced.
The company called the surcharges “temporary” and would be in effect for 60 days before being reviewed.
“Over the coming weeks we plan to listen closely to feedback from consumers, couriers and drivers,” Uber said in a statement. “We’ll also continue to track gas price movements to determine if we need to make additional changes.”
The company added that “100%” of the revenue generated by the fees will go “directly to workers’ pockets.”
Uber’s charges will go into effect during a tumultuous time for American fuel prices.
According to ABC News, “the average U.S. price of regular-grade gasoline shot up a whopping 79 cents over the past two weeks to a record-setting $4.43 per gallon (3.8 liters) as Russia’s invasion of Ukraine is contributing to already-high prices at the pump.”
President Joe Biden banned Russian energy imports on March 8.
“Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to [Russian President Vladimir] Putin’s war machine,” Biden said in his announcement. “This is a step that we’re taking to inflict further pain on Putin, but there will be costs as well here in the United States.”
The House followed suit the next day and passed a ban on Russian oil following a 414-17 vote. The vote also authorized additional sanctions, including limiting Russia’s access to the World Trade Organization (WTO).
Gas prices are $1.54 higher than they were in March of 2021, ABC News reports.
GasBuddy, a navigation and travel app that monitors gas prices across the country by crowdsourcing data, reports that California has the highest gas prices in the country with an average price of $5.73 per gallon.
Oklahoma has the nation’s lowest gas prices at $3.82 per gallon of regular gas.
