Petrol price increases are universally not welcome, driving up the cost of transportation and, for some, the expenses associated with generating power. Gig drivers, however, feel the impact more acutely as they rely on petrol for their daily operations.
In South Africa, petrol prices rose sharply twice in December 2024 and January 2025 due to elevated global oil prices and a depreciating rand. Drivers now pay R21.59 ($1.14) per litre, with further hikes expected in February. A recent analysis highlighted potential savings for drivers who switch to liquefied petroleum gas (LPG). For a gig driver covering 20,000 km annually, switching to LPG could save R978.59 ($52). However, the high upfront cost of converting a petrol vehicle to LPG remains a significant challenge.
In Nigeria, the situation is similarly pressing. Petrol prices soared from ₦145 to over ₦1,000 ($0.67) within 18 months, prompting some gig drivers to consider compressed natural gas (CNG) as an alternative. Converting a vehicle to CNG costs between ₦750,000 ($486) and ₦2.5 million ($1,620), but the potential savings are substantial.
CNG costs ₦230 ($0.15) per litre compared to petrol, and a gig driver traveling 20,000 km a year in a Toyota Corolla would spend ₦343,000 ($223) on CNG refueling, compared to ₦1.5 million ($968) with petrol. These savings grow with longer travel distances.
However, questions remain about the safety of retrofitted CNG vehicles. Without broader adoption, the risks of these modifications remain uncertain.
