LPG price hikes worry ride-hailing drivers; unions warn of supply disruption, income hit

• LPG prices surge, causing concern among ride-hailing drivers.
• Fuel supply disruptions feared due to Israel–Iran conflict.
• Drivers face income loss and long queues at fuel stations.

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Ride-hailing drivers operating on platforms such as Ola, Uber, Rapido and Namma Yatri are raising concerns over rising LPG prices and potential fuel supply disruptions triggered by the escalating Israel–Iran conflict, which unions say could hit gig workers’ earnings across multiple cities.

Gig worker unions warn that drivers using LPG and CNG vehicles could face immediate operational challenges if supplies tighten in the coming days.

The latest tensions in West Asia began on February 28, 2026, when Israel and the United States launched coordinated strikes on Iran, triggering retaliation and disruptions in shipping through the Strait of Hormuz, a key global energy trade route. The crisis has pushed up global oil and gas prices and disrupted energy supplies worldwide.

For India, which depends heavily on imported energy, the ripple effects are already being felt. LPG prices have begun rising and supply chains are under pressure as fuel shipments from the Middle East face uncertainty.

Drivers fear income loss as fuel prices rise

Drivers say rising fuel costs and potential shortages could directly affect their daily income.

“So far there is no issue with CNG, but LPG there are some issues. The prices have gone up. We haven’t seen such quick price hikes in the past few years. More than this, our household LPG issues are also there,” said Rajsekhar, a driver operating on Uber.

For many drivers, LPG-powered vehicles are cheaper to run compared with petrol or diesel. A sudden spike in prices or fuel shortages could reduce the number of trips they are able to complete each day.

In Bengaluru, most auto-rickshaw drivers rely on auto LPG and CNG. Records show that auto LPG prices have surged sharply in recent days.

The price rose from Rs 59 on February 28 to Rs 64 on March 1, Rs 69 on March 5, Rs 75 on March 7, Rs 85 on March 9 and further to Rs 89 on March 10.

Industry representatives say the increase in fuel prices has already started becoming visible at retail outlets.

“Prices of both LPG and CNG have gone up drastically due to excessive demand. Vehicle LPG prices used to be around Rs 59.84 per litre earlier, now it is around Rs 64.74 in government bunks, and private outlets are even more expensive, crossing Rs 85. CNG prices have gone up slightly but not to the same extent as LPG,” said CN Srinivas, president of the Auto Rickshaw Drivers’ Union (ARDU).

He added that the union is monitoring the situation closely.

“We haven’t written to the government yet, but we will be meeting today, assessing the situation and speaking to the ministry if required. We hope the situation doesn’t escalate,” Srinivas said.

Tanveer Pasha, president of the Ola Uber Drivers’ and Owners’ Association, said the situation is becoming increasingly difficult for drivers.

“Already CNG and auto gas prices are high, and now drivers are facing a double whammy. There should be some intervention from the government otherwise it is very difficult for drivers to survive,” he said.

C Sampath, general secretary of Adarsh Auto Drivers' Union, told Moneycontrol: “Drivers who take auto rickshaws on rent are the worst hit now. If we demand higher fares, people will curse us. But how will drivers support their families if the government does not control the LPG price hike? Each outlet is charging a different rate.

Some gas pump stations are shutting down

Industry sources say supply issues are already being felt in some cities.

An industry source told Moneycontrol that auto LPG filling stations in Chennai and Bengaluru are running dry. “In fact, many auto LPG outlets are closing down due to inadequate supply. Prices are also going up, and there are instances of rates being revised multiple times in a single day,” the source said.

Moneycontrol observed long queues at an IndianOil CNG filling outlet on ITPL Road in Whitefield, Bengaluru. A brief argument broke out between drivers and staff after the outlet halted supply citing technical glitches. Police later arrived at the spot.

However, gas suppliers say there is no immediate shortage of CNG in the city.

A senior GAIL Gas official said there is no shortage of CNG or PNG for households. “Customers do not need to panic as we have sufficient stocks. On Wednesdays, demand is usually higher since many people work from the office,” the official said.

He added that Bengaluru currently has around 1.8 lakh CNG vehicles, including around 40,000 cabs and 90,000 auto-rickshaws, with the rest being private vehicles.

Unions warn of broader gig economy impact

The Telangana Gig and Platform Workers’ Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) have warned that fuel supply disruptions could affect gig workers across sectors.

Thousands of drivers operating LPG and CNG vehicles on ride-hailing platforms depend on uninterrupted access to affordable fuel to sustain their daily livelihood, the unions said.

Any disruption could lead to long queues at fuel stations, fewer trips and immediate income loss.

The impact may not be limited to ride-hailing services alone. Delivery workers associated with food platforms could also face challenges if restaurants and cloud kitchens experience LPG shortages, reducing food preparation capacity and order volumes.

The unions have urged central and state governments to ensure uninterrupted supply of LPG and CNG in urban centres and called on platforms to support drivers with temporary incentives and avoid penalties if disruptions prevent them from completing trips.

Platforms say operations remain stable

Ride-hailing companies say operations are continuing as usual for now.

A Rapido spokesperson said the company is closely monitoring the situation and staying in touch with drivers.

“Rapido is closely monitoring the situation and remains in regular touch with its captain community across cities. Based on current trends, we are not seeing any significant disruption to auto or cab supply on the platform despite reports of an LPG or CNG shortage.”

Similarly, Namma Yatri said it has not yet received complaints from driver partners.

“We haven’t heard any issues from driver partners so far, but we always listened to drivers and worked in tandem with them. If we receive any complaints, we will ensure the problem is resolved and support them with necessary measures. We have also not seen any pricing impact,” a spokesperson from Moving Tech (Namma Yatri) said.

However, some commuters report already seeing higher fares.

A regular commuter travelling from Bengaluru’s Majestic to Rajajinagar said a ride that earlier cost around Rs 180–217 now starts at about Rs 270.