Gas prices in the United States have surged to unprecedented levels. It has rarely been more expensive for Americans to fill up their tanks and take a final summer trip over the Labor Day weekend.
The average price of regular gasoline was $4.14 a gallon heading into the holiday, nearly a dollar higher than during the same period last year and the highest since 2012, according to a motor club.
It must be noted that the national average price for regular gasoline remains well below the record of $5.02 a gallon set in June 2022.
Gas prices typically decline as the summer driving season ends and refineries switch to producing a cheaper winter-blend gasoline. However, ongoing geopolitical tensions in the Middle East have complicated the usual seasonal decline.
Meanwhile, Ukrainian drone attacks on Russian oil refineries have also contributed to tighter diesel supplies. Chinese refiners are seeing a decline in output as well, according to sources.
But the diesel story is different.
Diesel prices hit a national average of $5.85 a gallon on Friday. Trucks and other freight and delivery vehicles rely heavily on diesel, and higher transportation costs are being passed on to consumers through package deliveries and the transportation of essential goods to grocery stores.
A resident who had planned to travel from Philadelphia to South Carolina to visit friends over the long weekend said her family had spent most of the summer close to home. Despite that, they decided against making the weekend trip because the cost of driving had become too expensive.
Fuel prices surged after the US and Israel launched military strikes against Iran in February and have remained elevated since then. The conflict has disrupted crude oil flows through a strategically important waterway, while Iran has refused to reopen the waterway to normal traffic.
Analysts have been offering insights into when US drivers might see some relief at the gas pumps, noting that prices remain significantly higher than they were during the Labor Day period in 2025.