Surging oil costs pour fuel on the return-to-office debate

• Crude recently topped $100 a barrel, raising commute costs for workers who drive to their jobs.
• Some countries have issued guidance to consumers to mitigate the impact, though the US has not.
• "When gas prices spike, commuting effectively becomes a pay cut," said one COO.

After seeing fuel costs soar over the weekend, Boris Kagarlitskiy, a wealth manager in Ohio, dusted off his bike and peddled to work Monday morning.

"Health reasons is the biggest thing, but obviously when gas prices are high, it doesn't hurt," said Kagarlitskiy, who normally commutes via his 2024 Lexus, of cycling instead. "It's an additional motivation."

As oil climbs on fears of a widening war in Iran, the ripple effects are hitting Americans somewhere deeply familiar: their daily commute.

Crude spiked above $100 a barrel on Monday for the first time in almost four years. Some countries have already issued guidance to consumers to mitigate the impact, though the US has not.

In the UK, workers are being advised to cut out "non-essential journeys," and in the Philippines, government offices have been directed to implement flexible working arrangements. Vietnam told local businesses to work from home to save fuel.

Given the difficulty of reorganizing work and the uncertainty around how long higher prices will persist, most US-based employers are unlikely to alter their in-office requirements, said Aaron Sojourner, senior economist and deputy director of research at the W.E. Upjohn Institute for Employment Research.

A weak job market also means employees might have less ability to quit their jobs in favor of remote work or shorter commutes, he said.

A more expensive commute is "not something that you're going to quit over, probably," Sojourner told Business Insider.

If the cost of gassing up remains elevated for a long stretch, though, retaining talent could become a problem for employers, especially those in markets without easy access to public transportation.

"When gas prices spike, commuting effectively becomes a pay cut," said Jarah Euston, cofounder and chief operating officer of WorkWhile, a San Francisco-based platform for connecting employers to hourly workers. "Employers that can offer remote work, flexible scheduling, or help coordinate carpools can make a meaningful difference."

RTO versus WFH

Remote vs in-person work has been a hot-button topic since the pandemic. In recent years, many companies have called desk workers back to the office, while others have retained a hybrid approach. Of course, many jobs can't be done remotely — meaning some people, at least those who drive to their workplaces, have had to shoulder the costs of rising gas prices.

Josh Wahls, founder of Insurance By Heroes, a life-insurance brokerage based near Baltimore, told Business Insider that requiring his small team, which is already spread out, to commute would be like taking a pay cut. Anything he can do to boost their compensation, he said, increases the likelihood he'll retain his top performers.

"We've been remote since day one, but gas prices have made me even more certain I'll never drag my team into an office," he said.

Paul Whitten, founder and CEO of the tour company Nashville Adventures, said several workers told his operations director over the weekend that commuting downtown was becoming too expensive. In response, Whitten told staff this week they could work from home two days a week when they're doing administrative tasks.

"It was a no-brainer," he said.

Full-time in-office and hybrid workers commute on average 62 minutes a day round-trip, according to a 2025 study from video-conferencing company Owl Labs. They spend an average of $15 a day on gas and $9 daily on parking, the company found.

'It is what it is'

Kagarlitskiy said he decided to bike to the bank he works for on Monday after seeing gas prices in his area rise by 43 cents a gallon. Normally, the round-trip commute in takes 20 minutes. On two wheels, it's closer to 40.

The strategy has its limitations. On Tuesday, he said he ended up driving because the forecast called for rain. He also said commuting by bike can be dangerous and that he's had a few close encounters.

"Cars simply don't look," he said.

Meir Sabbagh, head of operations at a communications firm, prefers commuting to and from his office in downtown Manhattan in his 2015 BMW because of the privacy, even though it takes about four hours round-trip — sometimes longer if there's construction or an accident.

"I can belt out 'Golden' from KPop Demon Hunters in the car," he said.

Now, due to the higher cost of filling up his tank, he's been tempted to take a train. It's not ideal, though, because then he's bound to fixed departure times, and Sabbagh often needs to stay late, when service is limited.

"If it goes to an astronomical number, I will probably do public transportation more," he said.

Though his employer allows staff to work remotely two days a week, Sabbagh, who lives in central New Jersey, prefers being in the office with his teammates.

"It sucks to go to the gas station and see prices going up, but it is what it is," he said.

Not all car commuters are concerned about the high cost of gas in their wallets.

Gary Skinner of Bloomfield, New Jersey, said he isn't phased, even though he drives his 2004 Toyota about 150 miles a week to meet with clients for his consulting job.

"You can cry all you want, but I'll take temporarily higher prices at the pump versus a nuclear Iran," he said.

Earlier in his career, Skinner said he worked on oil rigs and at refineries, and that this experience has made him confident that the gas prices will return to normal levels.

"We are awash in oil, and we are spoiled," he said.

Do you have a story to share about your commute or work setup? Contact Sarah E. Needleman at sneedleman@businessinsider.com. Contact Tim Paradis at tparadis@businessinsider.com.