Sky-high gas prices are already hitting the economy

"The Iran war has sent oil prices skyrocketing, with the impact being acutely felt at the pump. The average price of gasoline jumped to $3.63 a gallon on Friday, according to AAA, up from $2.93 last month before Middle East tensions escalated. Gas is now above $3 a gallon in every US state for the first time since 2023."

"Uber and Lyft drivers told us they're getting more selective about which rides they accept as gas prices rise. That's because Uber and Lyft control fares, meaning drivers can't raise prices when their operating costs go up. Some gig drivers are rejecting shorter, lower-paying trips that burn fuel and instead are chasing longer fares that make the math work."

"When gas prices spike, commuting effectively becomes a pay cut. While a few employers say they're softening their RTO stances amid rising gas prices, the vast majority are unlikely to change their in-office requirements, particularly in a cooling job market where many workers lack the leverage to push back."

Gas prices have surged to $3.63 per gallon following Middle East tensions, marking the first time all US states exceed $3 per gallon since 2023. This increase is creating widespread economic disruption. Gig workers like Uber and Lyft drivers are becoming selective about rides since platforms control fares while fuel costs rise, forcing drivers to reject shorter trips. Electric vehicle owners gain competitive advantages as charging costs remain stable relative to gasoline. Higher commuting costs effectively reduce take-home pay for office workers, influencing return-to-office debates, though most employers maintain in-office requirements despite rising gas prices.

Read at Business Insider