Gasoline prices have surged, reaching a record high for Labor Day, with the national average for a gallon of regular unleaded gas at $4.15 on Monday, according to the American Automobile Association (AAA). This marks the first time prices have exceeded $4 per gallon on Labor Day, surpassing the previous record of $3.82 set on September 3, 2012. Although the current price is lower than the 2026 high of $4.56 in May, it remains approximately 30% higher than the average price of $3.20 from a year ago.
Brittany Moye, a spokesperson for AAA, noted that while gasoline demand typically decreases after the summer driving season, elevated crude oil costs have countered this trend. Diesel prices also reached a record high, costing $5.90 per gallon on Monday, compared to $3.71 a year ago.
As of 9:30 a.m. ET on Monday, West Texas Intermediate crude oil futures were trading at about $92 per barrel, up from approximately $67 before the Iran War began on February 28. Brent crude oil futures were around $97 per barrel, rising from about $72 prior to the conflict.
The volatility in oil prices is attributed to disruptions in the Strait of Hormuz, which have impacted global supply. The U.S. Energy Information Administration (EIA) reported that an estimated 4.9 million barrels of crude oil and petroleum liquids were transported daily through the Strait in the second quarter, significantly lower than the average of 21.6 million barrels per day in the last quarter of 2025.
Additionally, refinery operations have been affected by both the Iran War and the Russia-Ukraine War, contributing to the gasoline supply issues. Andy Lipow, president of Lipow Oil Associates, stated that supply disruptions in the Middle East and damage to refineries in those regions are reducing market supply.
U.S. gasoline inventories were reported to be 6% below average for the week ending August 28, according to the EIA. However, Lipow indicated that there may be some relief for consumers as the industry transitions to winter-grade gasoline in September, which is generally cheaper to produce. The Environmental Protection Agency announced on August 20 that winter-blend gas could be sold starting September 1, effectively ending summer-blend requirements early. Despite this, experts emphasize that global oil supply will remain a critical factor in determining gasoline prices moving forward.