John Mejia stares at his fuel gauge more often these days. The part-time Lyft and Uber driver in San Francisco used to pocket $400 in three hours. Now? Twelve hours for $200. Los Angeles Times. California’s average regular gas price hovers near $6 a gallon. Nationally, it’s just over $4. Data from the American Automobile Association tells the stark story.
High prices trace back to the Middle East war. Oil disruptions hit hard. But California piles on its own burdens: a 61-cent excise tax per gallon, plus environmental fees. The state demands a unique fuel blend no one else uses. Refineries? Two big ones shut down—Valero in the Bay Area, Phillips 66 in Wilmington. That’s 20% of production gone. Rising costs, tight rules, and profit caps chased them away. Chevron’s Richmond manager called it unviable.
Drivers feel it first. Over 800,000 gig rideshare workers in California. Independent contractors. No gas reimbursements. Mejia, active in the California Gig Workers Union—tied to the Service Employees International Union—says it plain: “Unfortunately, it’s the economics of paying less to drivers and gas prices. It actually is pulling people out of the business.”
And they are leaving. Pickier rides now. Sergio Avedian, in a Rideshare Guy blog post, pushes the ‘decline and recline’ tactic. Reject unprofitable trips. Wait for better ones. Social media buzzes with tips: minimize engine starts, dodge traffic, hunt high-demand spots, switch to EVs. Reddit threads. Facebook groups. All echo the squeeze.
Companies respond. Sort of. Uber offers up to $1 off per gallon via Upside, plus 5% extra cashback on its Pro card—through May 26. Lyft gives 2% back on its Direct debit card for top drivers. Combined, maybe 94 cents a gallon saved, per Lyft’s math on national averages. DoorDash and Instacart toss in weekly fuel payments for high-mileage runs—$5 for 125 miles, up to $15 for 250. But drivers call it insufficient. Temporary. Caveats everywhere.
Leslie Sherman-Shafer fills her Toyota Corolla in the Bay Area. Used to cost $25. Now $40. She drives extra days. “I’m putting in extra hours to cover the difference,” she told the Associated Press. Margarita Penalosa in Los Angeles ramps to seven days a week. Extra $15 per tank. Platforms updated rewards apps, debit perks. Still, many say it’s a slap.
Recent dips offer no real solace. April 13 saw California at $5.73, down from $5.77. U.S. Energy Information Administration tracks it. But spring demand looms. Analysts eye another 20-30 cents up. USC projections? $7.35 to $8.43 by year-end. National average crossed $4—the first since 2022.
Wait times stretch. Fares climb. Fewer drivers on road. Andre, an eight-year Uber vet in San Diego, gripes to FOX 5 San Diego: “Thank God I have a second job. The price of gas is actually killing us.” Riders notice. Business Insider reports drivers cherry-picking trips, hiking surge costs.
EV shift? Uber expanded its $4,000 grant nationwide, started in California and a few spots. But upfront costs deter. Maintenance, insurance rise too. Waymo’s driverless taxis in L.A. add pressure—no human overhead there.
Politics swirls. San Jose Mayor Matt Mahan drove Fresno to L.A., saw $7 signs. Calls for a gas tax holiday. Nancy Pelosi blasts rising costs on X. State begged oil firms to stay—after years accusing them of gouging. CBS found no evidence. Just policy fallout.
On X, chatter builds. Victor Narro shares the LA Times piece. Drivers lament full-time gigs turning losses. CNN notes millions nationwide hit, but California worst. Public transit ticks up—Amtrak sees more riders fleeing pumps.
Fewer rides mean supply crunch. Platforms face thinner margins if surcharges return—like 2022’s post-Ukraine moves. Lyft tried 55 cents per ride to drivers then. Uber held off fees. History repeats?
Mejia heads to union meetings. Gig freedom fades. Flexibility? Sure. But economics bite. Gas at $6 changes everything. Drivers adapt or exit. California watches supply dwindle.
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