As of Labor Day, the national average price for a gallon of regular unleaded gasoline hit $4.15, marking the highest price ever recorded for this holiday, surpassing the previous record of $3.82 set in 2012. This increase comes despite a slight decrease from the 2026 peak of $4.56 in May, with current prices approximately 30% higher than the $3.20 average from a year ago.
AAA spokesperson Brittany Moye noted that while gasoline demand typically falls after summer, high crude oil costs have countered this trend. Diesel prices also reached a record $5.90 per gallon, up from $3.71 last year.
The rise in oil prices is attributed to ongoing supply constraints, particularly due to the Iran War, which has significantly reduced the volume of crude oil transported through the Strait of Hormuz. West Texas Intermediate crude was trading around $92 per barrel, a notable increase from $67 before the conflict began.
Additionally, refinery operations have been disrupted by geopolitical tensions, further straining gasoline supply. However, there may be some relief on the horizon as the industry transitions to winter-grade gasoline, which is generally cheaper to produce.
The Environmental Protection Agency has allowed the early sale of winter-blend gas starting September 1, which could help lower prices at the pump. Experts emphasize that the overall trajectory of gasoline prices will still heavily depend on global oil supply dynamics and potential agreements regarding the Strait of Hormuz