The national average price of gas on Labor Day surpassed $4 per gallon, marking one of the highest readings in recent memory. This figure is significantly higher than the previous record set in 2012, which stood at $3.82 per gallon. AAA reported the national average at $4.1505 on Labor Day. The national average still remained below the all-time record of $5.02 per gallon set in June 2022.
Travelers returning from holiday trips encountered some of the most expensive Labor Day fuel costs ever recorded, according to Yahoo News. Regional averages were also well above $4 per gallon, reflecting widespread increases across the country.
The rise in prices is being attributed to global market forces and ongoing tensions in key oil-producing regions.
Energy Secretary Chris Wright did not offer specific timelines for when drivers might see relief at the pump, according to a report from The Associated Press. He acknowledged that current gas prices are higher than they were during Labor Day 2025.
Typically, gas prices decrease after the summer driving season ends and refineries switch to producing a cheaper winter blend. However, experts say this year’s situation is more complex due to multiple global disruptions.
The conflict between Israel and Iran in February has affected gas prices and crude oil traffic through the Strait of Hormuz. Crude oil traffic through this critical waterway has dropped sharply, with Iran refusing to reopen it. AP reported that prices surged after the U.S. and Israel attacked Iran in February and that traffic through the Strait subsequently plunged.
According to Tom Seng, a professor of energy finance at Texas Christian University, the situation in the Middle East is a major factor in current price trends.
Additional pressures come from Ukrainian drone strikes on Russian refineries, which are reducing diesel supply. Chinese refiners are also seeing lower production outputs, adding to global supply concerns.
U.S. refineries are operating at 98% capacity, with many operating under unusually harsh Texas heat conditions. These challenges make it difficult to predict future price movements, even as the summer season winds down.
Despite these pressures, there is little that individual drivers can do to reduce gas prices in the short term. The high cost of fuel has become a major concern for travelers planning trips during Labor Day weekend, kesq.com reported. News Channel 3 reported that many people are adjusting their travel plans due to the record prices. KESQ reported a Labor Day national average of $4.15 and a California average of $5.86.
IMAGE: Old gas pump in Pomona, Illinois. Photo: Daniel Schwen / Wikimedia, taken 2008-04-28, CC BY-SA 4.0