Gig Workers Demand Higher Per-Kilometre Rates After Fuel Price Hike

Statement by Gig and Platform Service Workers Union

“Gig & Platform Service Workers Union (GIPSWU) demands increase in per-kilometre service rates from the Government and digital gig platforms following hike in petrol, diesel and LPG gas prices”

“Rise in petrol and diesel prices will become a cause of concern and migration among gig workers”

“The direct impact of the increase in petrol and diesel prices will fall upon 1.2 crore gig workers”

The Gig & Platform Service Workers Union (GIPSWU) has expressed serious concern over the increase in petrol and diesel prices announced on 15 May 2026, stating that the decision will have a direct and severe impact upon lakhs of gig and platform workers engaged in app-based delivery, transportation, logistics and digital services across the country. The Union stated that this rise in inflation is a direct blow to gig workers and may compel many workers to leave the sector due to worsening economic conditions.

According to publicly available reports relating to fuel price revisions, oil marketing companies increased the prices of petrol and diesel by approximately Rs. 3 per litre on 15 May 2026, which is being considered one of the first major nationwide retail fuel price hikes after nearly four years. Following the increase, petrol prices in Delhi reached approximately Rs. 97.77 per litre while diesel prices increased to around Rs. 90.67 per litre. Reports indicate that the increase is linked to rising international crude oil prices and instability in global energy markets arising out of the continuing conflict and war situation in West Asia, particularly tensions involving Iran and developments around the Strait of Hormuz.

Union President Seema Singh stated that apprehensions regarding fuel price hikes had already emerged over the past several weeks due to the global crude oil crisis and that the earlier increase in LPG cylinder prices had imposed an additional financial burden not only upon the general public but also upon gig workers. The present increase in petrol and diesel prices has now further intensified the economic pressure upon the working class. She further stated that while gig workers have long been fighting for a central law protecting their rights, the movement demanding increase in per-kilometre payment rates for workers will now gain further momentum. Delivery workers associated with companies such as Swiggy, Zomato and Blinkit will not be able to bear the impact of rising petrol and diesel prices during the ongoing severe heatwave conditions. She stated that both the Government and companies should come forward and declare a service rate of Rs. 20 per kilometre.

National Coordinator Nirmal Gorana stated that among the nearly 60 crore workers engaged in the unorganised sector, around 1.2 crore gig and platform workers are among the worst affected sections because a large number of workers associated with app-based companies are completely dependent upon motorcycles, scooters and other vehicles for earning their livelihood. Every increase in petrol and diesel prices directly affects the daily earnings of women gig workers, delivery workers and drivers because expenditure on fuel, vehicle maintenance, servicing and transportation immediately increases while companies do not proportionately revise their payment structures.

According to estimates published by NITI Aayog, India had approximately 7.7 million gig workers during 2020-21 and the number is projected to increase to around 23.5 million by 2029-30. A substantial section of these workers is associated with app-based food delivery, grocery delivery, logistics, ride-hailing and digital platform services.

The Union stated that lakhs of workers associated with app-based companies including Swiggy, Zomato and Blinkit, Zepto, Dunzo, Urban Company, Ola, Uber, Rapido, Porter and Amazon Fresh are compelled to travel long distances every day in order to provide delivery and transportation services, and many workers work for 10 to 14 hours daily under difficult weather and traffic conditions.

The Union further stated that despite the continuous increase in operational expenses being borne by workers, several app-based companies have not proportionately increased delivery charges or kilometre-based compensation. In such circumstances, the present hike in fuel prices will further reduce the already unstable and insufficient earnings of gig and platform workers.

In view of the present situation, the GIPSWU has submitted a memorandum before the Government of India, concerned authorities and digital platforms seeking immediate intervention in the matter. The Union has requested the Government of India to issue appropriate directions and advisory measures to app-based and digital platform companies for revision and increase of delivery charges and kilometre-based payment rates so that the entire burden of rising fuel costs is not imposed upon workers.

The Union has also submitted memorandums to Swiggy, Zomato and Blinkit, Zepto, Dunzo, Urban Company, Ola, Uber, Rapido, Porter, Amazon Fresh and Instamart and other digital platform companies seeking immediate revision of payment structures, increase in kilometre-based delivery rates and reasonable compensation towards rising fuel expenses incurred by workers.

As a mark of concern and protest against the increasing economic burden being imposed upon gig and platform workers, the GIPSWU has appealed to gig and platform workers associated with various app-based companies to observe a temporary shutdown of app-based services on 16 May 2026 from 12:00 PM to 5:00 PM.

The Union stated that the proposed shutdown is intended to peacefully highlight the difficulties being faced by delivery workers, drivers and app-based service workers due to increasing operational expenses and inadequate compensation structures. The Union further appealed to the general public, civil society organisations and concerned authorities to support the legitimate concerns and livelihood issues of gig and platform workers across the country.

Issued by

Nirmal Gorana
National Coordinator
Gig & Platform Service Workers Union (GIPSWU)

 

 

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