Motorists across the U.S. are encountering record prices to fill their tanks for one final summer getaway over Labor Day weekend. The average price for regular fuel stood at $4.14 a gallon entering the holiday—nearly a dollar higher than last year and far above the previous Labor Day record of $3.82 set in 2012, according to the AAA motor club. Nicole Collins had planned a trip from Philadelphia to South Carolina to visit friends, but explained that her family spent most of the summer near home, skipping their routine weekend travel because driving became too costly.
"Gas is pretty high right now. It doesn’t help that we also have a baby, so we also have to pay for that," Collins said outside a gas station in Claymont, Delaware, where regular gas was $4.199 a gallon. Fuel prices escalated after the U.S. and Israel launched strikes on Iran in February and have remained high.
Tanker traffic through the critical Strait of Hormuz has dropped precipitously, with Iran refusing to reopen the passage. "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 offered few details on when drivers might see pump relief, acknowledging prices are higher now than Labor Day 2025.
"Yes, they’re higher today, but we’re doing everything we can to push them down," Wright said Sunday on ABC’s "This Week." The nationwide average for regular gasoline remains well below the record high of $5.02 per gallon set in June 2022. But diesel is a different story: It reached a record national average of $5.85 a gallon on Friday. Freight haulers and delivery fleets consume vast quantities of diesel, and those elevated transport expenses are passed to consumers at grocery stores and through package delivery fees.
"It doesn’t really seem like there’s an end to it," Collins said. Gasoline prices typically ease as summer driving ends and refineries switch to cheaper winter fuel blends. But Seng noted that other elements beyond Middle East instability make future prices unpredictable.
U.S. refineries are running at 98% capacity, many enduring harsh Texas heat. Should technical breakdowns occur or a severe hurricane force facilities offline, prices will struggle to fall. The issue extends beyond the Middle East.
Extract — continue reading at the source.
