Uber introduces fuel surcharge, citing the 'sting' of record-high prices at the pump

Sunday, 13 March 2022

Uber is introducing a temporary fuel surcharge in response to a spike in prices.

Ride-sharing company Uber is introducing a fuel surcharge to help offset higher fuel costs for its drivers.

Uber will introduce a temporary 60-day fuel surcharge on all trips in New Zealand, Uber New Zealand head of driver operations and marketplace Emma Foley said in statement.

“Many Kiwis are feeling the sting of record-high prices at the pump,” Foley said. “We’ve heard from driver-partner feedback that the recent sudden spike in petrol prices is having an impact.”

The temporary per-kilometre surcharge means drivers will receive about 40 cents extra on an average trip, Foley said. All money from the surcharge would be paid to drivers, she said.

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“The goal of this is to reduce the burden of the unprecedented nature of recent fuel increases while keeping the Uber platform working well for everyone,” Foley said.

Fuel prices have spiked higher as nervousness about Russia’s invasion of Ukraine pushes the cost of oil and other commodities sky-high. The price of petrol has jumped about $1 a litre in just three months and may rise further.

Petrol prices topped $3.50 a litre in most parts of the country last week, and were expected to increase up to 30 cents for diesel and 20 cents for petrol. The average price for 1 litre of 91 octane petrol was $2.45 in the December 2021 quarter, up from $2.00 in the March 2021 quarter, according to Stats NZ

AA principal policy adviser Terry Collins has said it was hard to say if the price of 91 would hit $4 a litre at New Zealand pumps. It would depend on whether Russia, a major exporter, could sell its oil to China which could bring prices down, he said.

San Francisco-based Uber has announced similar temporary charges for fuel in other markets, and has said it will assess the situation after 60 days.

- With AP