U.S. regular gasoline hits record $4.14 per gallon for Labor Day weekend
Average regular-gas price reached $4.14 a gallon, a Labor Day record, as Iran-related tensions and refinery constraints keep prices elevated.
The average price of regular gasoline in the United States rose 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. The increase follows heightened geopolitical tension after the United States and Israel struck Iran in February, which has reduced crude-oil flows through the Strait of Hormuz.
"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 acknowledged the rise and said the administration is working to lower prices, noting that futures markets suggest gasoline could be about 35 cents cheaper per gallon by November.
"Yes, they're higher today, but we're doing everything we can to push them down," Wright told ABC's "This Week."
Diesel prices also hit a new high, averaging $5.85 per gallon, which could raise costs for freight and consumer goods. Analysts highlighted additional pressures from U.S. refineries operating near full capacity in extreme heat, Ukrainian drone attacks on Russian facilities, and reduced output at Chinese refineries.
"There's just less gasoline coming out of those refineries," said Matthew Metzgar, a clinical professor of economics at UNC Charlotte.
While the market outlook points to a possible decline later in the year, drivers are advised to use price-comparison apps to find lower-priced stations along their routes.