Truckers, drivers angry at huge fuel hike
SKY-HIGH fuel prices are sparking waves of anger and frustration throughout the ranks of truckers and food delivery drivers in Asia, causing concerns over potential disruptions that could add to supply-chain risks.
South Korea’s average diesel price last week jumped 44% from a year earlier to the highest since 2008, while petrol surged more than 30%, according to data from Korea National Oil Corp. The fuel costs are rising at a time when freight rates and delivery fees have remained unchanged, directly impacting workers’ wages, union groups that represent the drivers said.
“The spike in petrol prices is a huge burden on us,” Gu Gyo-hyeon, a director at Rider Union, which represents 1 000 food delivery drivers in South Korea, said by phone. “Unlike other industries, we get zero subsidies from the government, which makes it even harder for us to maintain our jobs.”
Surging energy costs have been adding inflationary pressure across the globe, affecting everything from Uber
rides to children’s toys as oil underpins essential aspects of the economy like shipping and manufacturing. Japan has maximised the subsidy provided to oil refiners, and Pakistan is risking its $6 billion (about R86.5bn) bailout programme with the International Monetary Fund by cutting fuel prices and pledging not to increase them until at least June.
In response to the growing pressure, ride-hailing companies and other transportation providers are taking action. In the US., Lyft and rival Uber Technology added surcharges this month to rides to help drivers, while Grab Holdings was among several companies in Singapore making similar
moves to ease drivers’ gas bills.
In Tokyo, taxi drivers are seeking their first fare hike in 15 years.
Pump prices for diesel in New Delhi have increased 6.5% after a freeze of more than four months ended on March 22, sparking a protest from opposition lawmakers in India’s parliament. The spike is destroying the road transport sector, as diesel accounts for about 70% of operating costs, according to Kultaran Singh Atwal, president of the All India Motor Transport Congress, which represents about 10 million truck and bus operators. South Korea has extended a reduction in fuel taxes for another three months through July.