The national average price for regular gasoline set a record high for fuel costs on Labor Day, hitting $4.15 per gallon.
At $4.15 per gallon, gasoline is the highest it has ever been during the busy holiday weekend, which is one of the most popular weekends to travel all year, according to AAA. Gasoline is about 10 cents higher than a month ago, and nearly a dollar higher than a year ago.
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The spike in gasoline prices this year has been almost entirely driven by the war with Iran. The war began in February and has caused energy supply shortages of crude coming through the Strait of Hormuz, a key trade chokepoint.
Still, despite the increases, gas prices are not yet nearing the all-time highs notched back in 2022 amid the worst inflation wave in generations.
Regular gasoline hit an all-time high of over $5 in June 2022.
But diesel prices have reached all-time highs this year. A gallon of diesel fuel is at $5.90, a record high. Most trucks and vehicles used to ship goods and groceries require diesel, adding to the cost of shipping.
The higher gasoline prices are also bad news for President Donald Trump, whose second term has been mired by falling economic approval ratings, in large part because of continuing trouble with inflation and affordability concerns.
Gas prices fell at the start of Trump’s second term, setting a five-year low at $2.79 per gallon in early January, but the start of the Iran war changed that.
The Strait of Hormuz is a crucial trade waterway, and some 20% of global oil transits through the strait.
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Some states have lower gasoline prices than others.
Texas has the lowest average price for a gallon of regular gasoline at $3.67 per gallon, while California has the highest at $5.86.
