Labor Day Pain at the Pump: Gas Prices Smash Record as National Average Tops $4
American motorists faced the most expensive Labor Day gasoline prices on record Monday, with the nationwide average climbing above $4 per gallon amid persistently high crude oil prices and disruptions to global energy supplies.
The average price for a gallon of regular gasoline across the country reached $4.15, according to AAA, breaking the previous Labor Day record of $3.82 per gallon established in 2012.
It marked the first time the national gasoline average has ever exceeded $4 per gallon on Labor Day.
The situation was considerably worse in some parts of the country. At one gas station in Chicago, regular gasoline was priced at $5.59 per gallon Monday morning as millions of travelers made their way home at the conclusion of the holiday weekend.
Although gasoline has retreated from its 2026 high of $4.56 per gallon in May, drivers are still paying substantially more than they were at this point last year. The current national average is approximately 30% higher than the $3.20-per-gallon average recorded a year earlier.
“While gasoline demand typically declines after the summer driving season — often leading to lower prices — this year’s elevated crude oil costs have offset that seasonal trend,” AAA spokesperson Brittany Moye said.
Diesel fuel has experienced an even steeper increase, with the nationwide average reaching $5.90 per gallon Monday, compared with $3.71 at the same time last year.
The war with Iran has been a major factor driving crude oil prices higher, as the conflict has dramatically curtailed petroleum shipments through the Strait of Hormuz, one of the world’s most important energy transit corridors.
West Texas Intermediate crude was trading at approximately $92 per barrel Monday, compared with about $67 before the war began on Feb. 28. Brent crude, meanwhile, was trading near $97 per barrel, up from roughly $72 before the fighting started.
During the second quarter, an estimated 4.9 million barrels of crude oil and other petroleum liquids passed through the Strait of Hormuz each day, according to the U.S. Energy Information Administration. That represents a dramatic decline from the 21.6 million barrels per day that traveled through the strategic waterway during the final quarter of 2025.
Additional pressure on fuel supplies has come from damage sustained by refineries in both the Middle East and Russia. At the same time, U.S. gasoline inventories for the week ending Aug. 28 stood 6% below their typical levels.
Motorists could see some relief in the weeks ahead. The Environmental Protection Agency announced last month that less expensive winter-blend gasoline could begin being sold on Sept. 1, two weeks earlier than normally permitted, a move intended to expand available supplies and help bring down prices at gas stations.
