After a long day of working, Nguyen, an e-hailing driver in Ho Chi Minh City, Vietnam, felt disheartened to discover that half of his earnings had gone on fuel expenses. He drove for eight hours, earning about 240,000 Vietnamese dong (around £9.11), but spent 120,000 dong (approximately £4.56) on petrol. “I can’t survive with this amount of money in the city,” he explained.
In Vietnam, the impact of the ongoing US-Israel conflict is affecting many gig workers. Normally, about 80 percent of the country’s crude oil comes from Kuwait, but due to an effective blockade by Iran in the Strait of Hormuz, fuel shipments have plummeted, causing prices to rise significantly. Diesel prices have more than doubled, and petrol prices have increased by nearly 30 percent, making transport costs more burdensome in cities like Ho Chi Minh.
Consequently, many drivers, including Nguyen, are choosing to stop working temporarily due to high fuel costs. “I will turn off the app and stop working for a few days to see if the price goes down,” he stated.
The Vietnamese government has introduced emergency measures to alleviate the situation. Prime Minister Pham Minh Chinh announced a suspension of environmental taxes on diesel and petrol until mid-April to stabilise prices. Despite sacrificing an estimated $273 million in revenue, authorities recognise the urgent need for action as rising costs lead to increased discontent among citizens.
Long-term solutions are required, particularly around energy independence. Policymakers aim to expand refining capacity, as current infrastructure is insufficient for the country’s needs.
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