Gasoline prices reached a record high for Labor Day, with the national average for regular unleaded hitting $4.15 per gallon Monday, according to AAA. The milestone comes during one of the busiest travel weekends of the year, raising costs for millions of drivers already facing sharply higher fuel prices. Diesel prices also reached a holiday record, while disruptions to global oil supplies and refinery operations continue to pressure the U.S. fuel market.
Gas Prices Set a Labor Day Record
The national average for regular gasoline reached $4.15 per gallon Monday, the highest price ever recorded by AAA for Labor Day. Gasoline has never previously topped $4 per gallon on the holiday. The previous Labor Day record was $3.82, set on Sept. 3, 2012. Prices have eased from the 2026 peak of $4.56 per gallon reached in May, but they remain about 30% above the $3.20 average recorded a year ago. "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," said Brittany Moye, a spokesperson for AAA.
Diesel Prices Are Also at a Record
Diesel reached $5.90 per gallon Monday, according to AAA, compared with $3.71 a year earlier. The timing adds pressure for travelers and businesses during the Labor Day weekend, which Hertz identifies as one of the year's busiest periods for road travel.
Strait of Hormuz Disruption Keeps Oil Prices High
Global oil supply remains constrained as tankers have faced disruptions while attempting to pass through the Strait of Hormuz. West Texas Intermediate crude futures, a benchmark for U.S. oil prices, were trading at roughly $92 per barrel at 9:30 a.m. ET Monday. Before the Iran War began Feb. 28, WTI was around $67 per barrel. Brent crude, the international benchmark, was trading near $97 per barrel, compared with roughly $72 before the conflict began. The Strait of Hormuz is a critical part of the global oil supply chain. The U.S. Energy Information Administration estimated that about 4.9 million barrels of crude oil and petroleum liquids moved through the strait each day during the second quarter, down sharply from an average of 21.6 million barrels per day in the final quarter of 2025.
Refineries Are Adding to the Supply Pressure
Oil supply is not the only problem facing gasoline markets. Refineries have also been taken offline because of the Iran War and the Russia-Ukraine War, reducing the amount of fuel reaching consumers. "We still have a supply disruption in the Middle East at the same time refineries in both the Middle East and Russia have been damaged due to conflicts in those regions, which reduces supply that reaches the market," said Andy Lipow, president of Lipow Oil Associates in Houston. U.S. gasoline inventories were 6% below average for the week ending Aug. 28, according to the Energy Information Administration.
Winter Gasoline Could Bring Some Relief
There is one potential source of relief for drivers. The gasoline industry normally begins transitioning to winter-grade fuel in September, and the cheaper formulation generally costs less to produce. Summer gasoline uses a more expensive blend and is generally produced until Sept. 15. This year, the Environmental Protection Agency moved to ease the transition earlier in an effort to increase supply and lower prices. The EPA announced Aug. 20 that winter-blend gasoline could be sold beginning Sept. 1, effectively ending summer-blend requirements early.
Oil Prices Remain the Biggest Wild Card
The shift to cheaper winter gasoline could provide some relief at the pump, but the broader oil market remains the key factor for prices. Lipow said the market is watching for any agreement between the U.S. and Iran that could reopen the Strait of Hormuz to unrestricted traffic. Until then, continued disruptions to global oil supplies could keep pressure on gasoline prices.
What Comes Next
Drivers could see some relief as winter-grade gasoline becomes more widely available, but the outlook remains closely tied to global oil supplies. The next major question is whether traffic through the Strait of Hormuz can return to normal. A resolution that restores oil shipments could ease crude prices, while continued disruption would leave gasoline prices vulnerable to further pressure.
FAQ
What is the national average gas price on Labor Day?
The national average price for regular gasoline reached $4.15 per gallon on Labor Day, according to AAA.
Is $4.15 the highest Labor Day gas price ever recorded?
Yes. AAA said gasoline had never previously averaged more than $4 per gallon on Labor Day. The previous record was $3.82 in 2012.
Why are gas prices so high in 2026?
Higher crude oil costs, disruptions to oil shipments through the Strait of Hormuz and refinery outages are contributing to elevated gasoline prices.
How much is diesel costing on Labor Day?
Diesel reached $5.90 per gallon Monday, compared with $3.71 a year earlier, according to AAA.
Could winter-blend gasoline lower prices?
Yes. Winter-grade gasoline generally costs less to produce, and the EPA allowed its sale beginning Sept. 1 this year to help increase supply and ease prices at the pump.
