Gasoline Hits a Record $4.14 a Gallon for Labor Day Weekend

Americans heading out for the Labor Day holiday are paying the most for gasoline on record for the occasion. Regular gas averaged $4.14 a gallon heading into the holiday, according to AAA figures reported by The Associated Press, nearly a dollar more than a year ago. CBS News, citing the same auto club, put the average at $4.15 on Friday, up 4 cents from a week earlier. The previous Labor Day record was $3.82, set in 2012.

The price is still below the all-time national record of $5.02 a gallon, set in June 2022. Diesel, however, has passed its own peak. The AP reported a national average of $5.85 a gallon on Friday, and CBS News said that topped the previous high of $5.81 in June 2022. Because diesel fuels trucks, trains and farm equipment, higher prices tend to show up later on store shelves. Susan Bell of the research firm Rystad Energy told CBS News that rising diesel costs are “inflationary.”

Both outlets trace the jump to the war with Iran, which began in February when the United States and Israel attacked the country. Crude oil traffic through the Strait of Hormuz has fallen sharply, according to the AP, because Iran has refused to reopen the waterway. CBS News reported that Iran claimed new strikes on U.S. forces in the Middle East, pushing crude higher again, with Brent trading around $95.55 a barrel and U.S. benchmark crude near $91.50.

Other pressures are adding to the squeeze. The AP reported that refineries are running at about 98 percent of capacity, that heat in Texas has strained some of them, and that a hurricane could disrupt more. Ukrainian drone attacks on Russian refineries are tightening diesel supplies, and Chinese refinery output is declining, the wire service said.

An energy finance professor told the AP that “everything points to the Iran war and the Strait of Hormuz.” Drivers on long interstate trips may pay 10 to 15 cents more per gallon than at stations just off the highway, the AP reported.

The Trump administration has argued relief is coming. Energy Secretary Chris Wright acknowledged that prices are higher than they were on Labor Day 2025 and said the administration is working to push them down. The AP noted that futures for November delivery were about 35 cents a gallon cheaper than current wholesale prices. CBS News quoted an analyst identified only as De Haan saying prices typically decline in the fall but that today’s levels reflect geopolitical tensions.

For travelers this weekend, the comparison is plain: nearly $1 more per gallon than last Labor Day.