Arizona rideshare drivers squeezed as gas averages remain high

PHOENIX - The war in the Middle East and the ongoing conflict between Iran and the United States regarding the potential closure of the Strait of Hormuz continue to hold gasoline prices at elevated levels, even as oil is released from strategic reserves. The high costs are placing a significant burden on rideshare drivers who rely on driving for their primary income.

What we know:

According to AAA, the average cost for a gallon of regular fuel in Arizona sits at $4.82, which tracking figures show is higher than the national average of $4.51.

With conflicts in the Middle East showing no signs of stopping, an energy expert warns that gasoline prices in Arizona could reach $6 a gallon in the near future, an escalation that would heavily impact local rideshare operators who spend all day on the road. 

Big picture view:

The upward trend is a growing issue that is not only affecting rideshare drivers in Arizona, but also drivers nationwide and across the globe.

"I barely get any sleep because I have to go hard," Arizona rideshare driver Joquin Grays said. "With this being my main job, I have to grind harder."

"It's high. We're feeling it. It's a big thing. I fill it up everyday," rideshare driver Jernaria Reynolds said.

What Experts Are Saying:

Ed Hirs, an energy economist, said consumers should prepare for additional price hikes in the coming months.

"We're going to see the gasoline prices continue to rise through the summer, even if peace were to break out today," Hirs said.

Hirs says that is because it would take time for countries like Saudi Arabia and Iraq to bring their other oil production back online.

"Almost 750 million barrels have not made it to the market that would have barring this war," Hirs said. "Of course keep in mind that Ukraine is knocking out Russia's oil expert capabilities."

By the numbers:

During the past month, the U.S. exported more than 14 million barrels of crude oil and refined products every day.

"That's more than we produce domestically," Hirs said. "We're just running down our inventories and that even includes taking oil from the strategic petroleum reserve."

Due to the war in the Middle East, the International Energy Agency enacted a historic release of 400 million barrels of oil from global emergency reserves. Out of that total, the U.S. released 172 million barrels from its petroleum reserve, intended to stop gas prices from going up.

"As a result, the gasoline buyer in Phoenix or in Tucson or Scottsdale is having to bid against the gasoline buyer in Paris or Tokyo," Hirs said.

Local perspective:

Rideshare drivers continue to face immense financial stress at the pump.

"Now $20 don’t even get this a half a tank and before it was like $35 maybe to fill it up," Grays said.

Grays says high gas prices are also impacting his income, especially after the company takes its share.

"So they take like more than half of what we make," Grays said. "So earlier I did a ride for $44 and got $16."

Dig deeper:

Despite the shrinking profit margins, some operators who use rideshare driving as a secondary source of revenue said it is still worth it. 

"Don’t let the prices discourage you," Reynolds said. "We can't really do much about it until they start to go down."

What's next:

When the oil from the strategic reserves runs out, that is when consumers could be seeing prices go up to possibly $6 a gallon. Using public transportation or carpooling is something that Hirs says could save people some money.