Gas Prices Jump As Americans Brace For Most Expensive Labor Day At The Pump Ever
Americans hitting the road for Labor Day weekend can expect an expensive bill at the pump as gas prices remain near record highs.
The national average for a gallon of gas on Friday was $4.15, while diesel prices hit a record-high $5.85 per gallon. Labor Day gas prices will be more expensive than ever if the average holds above $4.00, according to fuel industry tracker AAA.
Much of the current pain at the pump stems from uncertainty in the Strait of Hormuz amid the war between the United States and Iran. Prices across the country have spiked since the war began in February.
“Continued volatility in the Strait of Hormuz has pushed crude oil prices in the $90 per barrel range. After a record-setting August, this Labor Day weekend is on track to also set a record at the pump,” analysis from AAA found. “Even though gasoline demand decreases this time of year, typically bringing down gas prices, this year is different due to the high cost of crude oil.”
National average gas prices hovered around $4.00 per gallon a month ago and sat at $3.20 just one year ago, according to AAA. Before the war with Iran began, the national average for a gallon was about $3.00.
The average diesel price on Friday broke the record previously set during the early months of the Russia-Ukraine war. Rising diesel prices cause spikes across the board as the cost of transporting goods and equipment increases.
The Trump administration says relief at the pump is coming as it touts efforts to secure the Strait of Hormuz and deals with the oil-rich Venezuela. Last week, President Donald Trump said he signed a deal with Venezuela to secure majority control of more than 65 billion barrels of oil reserves
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future,” Trump wrote.
This week, the Trump administration maintained that oil coming through the Persian Gulf had returned to higher levels than before the war started. A new wartime high of 18 million barrels of oil reportedly moved through the Strait of Hormuz on Tuesday, according to American officials.
