U.S. regular gasoline reaches record $4.14 per gallon for Labor Day weekend
Average regular gasoline prices rose to $4.14 a gallon, a new Labor Day weekend high, while diesel hit a record $5.85 per gallon, amid ongoing geopolitical tensions and supply constraints.
The average price of regular gasoline in the United States climbed to $4.14 per gallon ahead of the Labor Day weekend, surpassing the previous record of $3.82 set in 2012, according to data from the AAA motor club. Diesel prices also reached a new high, averaging $5.85 per gallon.
Consumers reported cutting back on travel due to the higher cost of fuel. One driver in Delaware noted that the price at a local station was $4.199 per gallon and expressed concern about the impact on family expenses.
Analysts linked the price surge to ongoing disruptions in the Middle East. "Everything points to the Iran War and the Strait of Hormuz," said Tom Seng, a professor of energy finance at Texas Christian University.
Energy Secretary Chris Wright said the administration is working to lower prices, noting that futures markets indicate gasoline could be about 35 cents cheaper per gallon in two months. "We’re doing everything we can to push them down," he told ABC’s “This Week.”
Seng added that U.S. refineries are operating near full capacity amid extreme heat, and any operational issues or weather events could keep prices elevated. Additional pressures include reduced output from Ukrainian drone attacks on Russian refineries and declining production at Chinese facilities, according to Matthew Metzgar, a clinical professor of economics at UNC Charlotte.
While the current national average remains below the all-time high of $5.02 set in June 2022, experts said price trends are uncertain. Metzgar suggested drivers use price-comparison apps to find cheaper stations, especially on long trips.
The higher diesel costs are expected to affect freight rates, potentially raising prices for goods and deliveries.