Uber, the U.S. ride-hailing service, has decided to impose a fuel surcharge after oil prices soared in the aftermath of the Russian invasion of Ukraine.
It has been reported that Uber will raise its fares from the 16th of this month.
A fuel surcharge of 45-55 cents is levied for car calls, and customers using food delivery service Uber Eats must pay an additional charge of 35-45 cents.
Uber said it will impose a fuel surcharge as gasoline prices hit an all-time high, and the increase will be used to cover the cost of fuel for drivers.
Uber has decided to apply the fuel surcharge for at least 60 days and consider whether to extend it while monitoring the price of gasoline.
Business Insider, an economic media outlet, said that Uber introduced a surcharge after gasoline prices soared following Russia’s invasion of Ukraine, and that US sanctions against Russia could further increase oil prices.
The US has imposed an import ban on Russian oil, gas and coal resulting in the average price of gasoline in the U.S. as of March 12 was $4.326 per gallon according to the American Automobile Association (AAA).