When the Pump Hits Hard: How Employers Can Support Commuting Employees During the Gas Price Surge

A Warning From History

If you're old enough to remember 1979, the current surge in gas prices might feel like a warning and signal that history, once again, is knocking at the door. The Iranian Revolution triggered one of the worst energy crises in American history: gas lines stretched around city blocks, odd-even rationing was enforced across multiple states, inflation surged past 13%, and President Carter called it the "moral equivalent of war." For everyday commuters, just getting to work became a daily ordeal.

That crisis transformed America sparking a national shift toward carpooling, fuel-efficient vehicles, and a long overdue conversation about energy independence. The lessons it taught us are just as relevant today.

Here We Go Again

Since late February 2026, gas prices have surged by nearly a dollar per gallon following the escalation of conflict in the Middle East, disrupting the flow of oil through the Strait of Hormuz. The national average for gas has climbed to $3.98 per gallon, the highest in over two years with some states seeing increases of more than 30%. Areas of California, have seen gas prices surpass $6.00 per gallon. For employees driving 30, 40, or 50 miles round trip each day, this is a real and immediate financial burden.

The difference between 1979 and today? Employers have meaningful tools to help, and the best employers are already using them.

What Employers Can Do Right Now

Revisit Remote & Hybrid Work Policies

The most direct way to reduce commuting costs is to reduce commuting. One or two additional work from home days per week can make a measurable difference. For employers with expectations of return to office, even a temporary reprieve or a brief delay in full implementation can go a long way in easing the financial strain on your team.

Offer Flexible Scheduling

Flexible start and end times allow employees to stagger commutes, avoid peak traffic, and improve fuel efficiency. Compressed work weeks (e.g., four 10-hour days) eliminate one full commute day per week a benefit employees will feel immediately. 

Before implementing compressed work weeks, consult with a Human Resource professional to ensure compliance with local labor and wages laws.

Implement a Gas Stipend or Fuel Reimbursement

Employers can offer monthly support through:

• A preloaded gas card usable directly at the pump
• A monthly stipend deposited into the employee's account.
• Mileage reimbursement based on miles driven to and from work.

Make sure to work with a Finance professional to determine applicable tax implications.

Expand Pre-Tax Commuter Benefits

Under IRS Section 132(f), employers can offer qualified transportation fringe benefits, allowing employees to set aside pretax dollars for eligible transit, vanpool, and parking expenses, reducing taxable income for both parties.

Employees can save up to 40% on monthly transit costs through pre-tax benefit options.

Organize or Subsidize Carpooling

Just as in 1979, carpooling is making a comeback. Employers can organize carpool matching programs, offer preferred parking for carpoolers, and incentivize ride sharing, especially for teams in areas without public transit access.

Support Alternative Commuting Options

• Bike to work programs with secure storage and shower facilities.
• EV charging stations onsite for electric or hybrid vehicle owners.
• Rideshare stipends (Uber, Lyft) for nontraditional shift workers.

Acknowledge the Financial Strain Out Loud

Sometimes the most powerful thing a leader can do is simply name it. Employees are feeling the pressure. HR leaders and managers should acknowledge how global events are impacting daily life and communicate clearly what support is available. Empathetic leadership builds lasting loyalty.

The Bottom Line

Workers in 1979 faced the pump alone. Today's employees don't have to. The options above aren't just perks, they're strategic tools for retention, morale, and trust. In an environment where gas prices are rising every day, employees will remember which employers showed up for them.

At OneDigital, we help businesses build benefits strategies that meet employees where they are in good times and challenging ones. Reach out to your OneDigital advisor today to explore commuter benefit solutions, review your total compensation strategy, create compliant tailored workplace policies, and develop clear communication plans to keep your employees informed and supported.