The average price of regular gas was $4.14 a gallon heading into the holiday, nearly a dollar higher than last year and well above the Labor Day weekend record of $3.82 from 2012, according to AAA motor club, creating the most expensive conditions on record for U.S. drivers taking a final summer trip. That national average stands nearly a dollar higher than last year and well above the previous Labor Day weekend record of $3.82 set in 2012, driven by supply shocks following the February attacks on Iran by the U.S. and Israel.
Middle East Conflict Drives Record Fuel Costs
Shipments of crude oil through the vital Strait of Hormuz have dropped sharply, with Iran keeping the passage shut. Tom Seng, a professor of energy finance at Texas Christian University, noted that energy markets remain bound to the ongoing disruption. “Everything points to the Iran War and the Strait of Hormuz,” Seng said. While the current national regular gasoline average remains well below the record of $5.02 a gallon set in June 2022, the persistence of high pump prices has forced travelers to alter their habits. Nicole Collins, a Philadelphia resident who planned a trip to South Carolina to visit friends, said her family spent most of the summer close to home due to mounting driving costs. “Gas is pretty high right now. It doesn’t help that we also have a baby, so we also have to pay for that,” Collins said outside a station in Claymont, Delaware, where regular fuel reached $4.199 a gallon.
Diesel Prices Surge to Historic Highs
Gasoline stays under past highs, but diesel tells a different story after reaching an all-time peak with a national average of $5.85 a gallon on Friday. Because commercial trucks and freight delivery systems rely heavily on diesel, these soaring transportation expenses flow directly into consumer goods at grocery stores and through package delivery networks. “It doesn’t really seem like there’s an end to it,” Collins said of the sustained cost pressures. Energy Secretary Chris Wright offered few specifics on when the nation’s drivers might see relief at the gas pump, acknowledging that prices are higher now than Labor Day 2025. “Yes, they’re higher today, but we’re doing everything we can to push them down,” Wright said Sunday on ABC’s “This Week.”
Refinery Bottlenecks and Global Supply Squeezes
As the summer driving period concludes and facilities transition to producing less expensive winter fuel blends, pump prices generally decline. However, energy experts point to multiple compounding variables threatening price drops this year. U.S. refineries are working at 98% capacity, many in the unusually harsh Texas heat. If there are problems there or a hurricane knocks some systems offline, prices will struggle to drop. International pressures compound the domestic strain. According to Matthew Metzgar, a clinical professor of economics at UNC Charlotte, Ukrainian drone attacks on Russian refineries are squeezing diesel supplies while Chinese refiners are seeing declining outputs. “There’s just less gasoline coming out of those refineries,” Metzgar said.
What Drivers Can Do to Save Money
Federal officials point to market projections for potential relief later in the year. The Trump administration is taking steps to boost output, according to Energy Secretary Wright, who added that markets project reduced costs in the months ahead. “If you look at the futures prices, if you wanted to buy today in bulk gasoline for two months out in November, it’s about $0.35 cheaper than it is today. So the marketplace thinks gasoline prices are going to move meaningfully lower,” he said. Geopolitically, though, there is little a driver can do to knock down gas prices. To help minimize expenses during extended journeys, Metzgar suggests using mobile apps to compare rates, pointing out that fuel right off the highway can cost 10 to 15 cents more per gallon than options found a short distance away.
Pro Tip: When planning long-distance travel, avoid filling up directly off major highway exits. Use fuel price tracking apps to locate stations a short drive away on local roads to save 10 to 15 cents per gallon.
Frequently Asked Questions
Why are gas prices so high this Labor Day?
The national average reached $4.14 a gallon due to reduced crude oil traffic through the Strait of Hormuz following the February attacks on Iran by the U.S. and Israel, alongside high refinery utilization rates and international supply constraints.
How do current prices compare to past records?
According to the AAA motor club, the regular gas average heading into the holiday is nearly a dollar higher than last year and exceeds the previous Labor Day record of $3.82 from 2012. However, it remains well below the record of $5.02 a gallon set in June 2022.
Are diesel prices also at record levels?
Yes. Diesel hit a national average of $5.85 a gallon Friday, a record, that continues to drive up freight and grocery delivery costs.
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