Labor Day Gasoline Prices Hit Record High As Diesel Sets New Peak
Heading into Labor Day weekend, the U.S. average price of regular gasoline hit a record $4.14 per gallon and diesel rose to $5.85, squeezing drivers and shippers.[1]
AAA says Labor Day gasoline prices have never before exceeded $4 per gallon; the prior holiday record was $3.82 in 2012.[1] This year's $4.14 average is nearly $1 above Labor Day 2025 and is adding to household cost pressures.
The Iran war has reduced crude flows through the Strait of Hormuz and tightened global oil supplies. Ukrainian drone attacks on Russian refineries and weaker Chinese refinery output have further cut fuel availability. Diesel reached its record national average of $5.85 on Friday, September 4, raising trucking and freight costs.
Energy Secretary Chris Wright said on Sunday, September 6, that futures show November gasoline about 35 cents cheaper than current levels, which suggests markets expect lower prices this fall.[1] A Brown University tracker estimates higher fuel costs since the start of the Iran war have cost U.S. households more than $741 on average.
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📌 Key Facts
- Heading into Labor Day weekend 2026, the U.S. average price of regular gasoline was $4.14 per gallon, a record high for the holiday and nearly $1 above Labor Day 2025.
- AAA says Labor Day gasoline prices have never before exceeded $4 per gallon; the prior Labor Day weekend record was $3.82 in 2012.
- Diesel prices reached a record national average of $5.85 per gallon on Friday, September 4, 2026, raising trucking and freight costs.
- Analysts attribute the surge largely to the Iran war and reduced crude flows through the Strait of Hormuz, as well as Ukrainian drone attacks on Russian refineries and lower Chinese refinery output.
- Energy Secretary Chris Wright said on Sunday, September 6, 2026, that futures prices show November gasoline about 35 cents cheaper than current levels, indicating expectations of lower prices.
- A Brown University tracker estimates that higher fuel costs since the start of the Iran war have cost U.S. households more than $741 on average.
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