US Gas Prices Hit Record High for Labor Day Weekend
US average gas price hits record $4.14 for Labor Day weekend, up nearly $1 from last year, driven by Iran war and refinery issues.
As Americans hit the road for the Labor Day weekend, they are facing the most expensive fuel prices ever recorded for the holiday. The national average for regular gasoline reached $4.14 per gallon, according to AAA, nearly a dollar higher than last year and well above the previous holiday record of $3.82 set in 2012.
For many families, the high prices have changed summer plans. Nicole Collins, who usually drives from Philadelphia to South Carolina to visit friends, said her family has stayed close to home most of the season because driving has become too costly. Speaking at a station in Claymont, Delaware, where gas was $4.199 a gallon, she noted the added expense of a new baby.
Prices have climbed since the U.S. and Israel attacked Iran in February, disrupting crude oil shipments through the Strait of Hormuz. Iran has refused to reopen the waterway, keeping supply concerns elevated. Energy experts point to the conflict as the primary driver. Energy Secretary Chris Wright acknowledged prices are higher than last Labor Day but said the administration is working to push them down.
The national average remains below the all-time high of $5.02 set in June 2022, but diesel prices tell a different story. Diesel hit a record national average of $5.85 per gallon on Friday, raising costs for freight and delivery services, which are likely passed on to consumers.
Typically, gas prices ease after the summer driving season, but analysts say other factors complicate the outlook. U.S. refineries are running at 98% capacity, many in extreme Texas heat, leaving little room for disruptions. Ukrainian drone strikes on Russian refineries and declining output in China are also tightening diesel supplies.
Energy Secretary Wright pointed to futures markets, which suggest gasoline could be about 35 cents cheaper by November. Until then, experts advise drivers to use price apps and avoid interstate stations, which can charge 10 to 15 cents more per gallon than nearby off-highway options.