The national average price for regular gasoline in the United States reached $4.15 per gallon on Friday, according to AAA, marking the highest Labor Day gas prices on record. The previous record of $3.82 per gallon was set on September 3, 2012, and this is the first time the national average has exceeded $4 per gallon during the Labor Day holiday weekend.
AAA data show the national average has fluctuated in recent months, peaking at $4.56 per gallon in May before easing to $4.09 per gallon by late August. However, prices have since climbed again, with the latest increase attributed to sustained high crude oil costs and geopolitical tensions.
Regional price variations
The highest gas prices as of September 4 were reported in Arizona ($4.52 per gallon), followed by California ($4.49 per gallon) and Nevada ($4.47 per gallon). The lowest prices were found in Mississippi ($3.76 per gallon), Louisiana ($3.78 per gallon), and Texas ($3.80 per gallon). Compared to one year ago, 48 states and the District of Columbia have seen increases in gas prices, with Arizona experiencing the largest year-over-year jump of $1.06 per gallon.
Driving factors behind the surge
Analysts cite elevated crude oil prices, which have remained near $90 per barrel, as the primary driver of the increase. The conflict between Iran and regional actors has disrupted shipping through the Strait of Hormuz, a critical transit route for approximately 20% of global oil transport. While gasoline demand typically declines after the summer driving season, the high cost of crude has prevented a seasonal price drop.
Potential relief on the horizon
Some industry observers suggest prices may stabilize after Labor Day as demand decreases and refineries transition to cheaper winter-blend fuel. GasBuddy’s head of petroleum analysis, Patrick De Haan, noted that global tensions and supply uncertainty have played a larger role in price fluctuations this year than traditional supply-and-demand factors.
Consumer strategies for savings
Several retailers have introduced temporary promotions to offset costs. Chevron is offering $1 off per gallon for up to five fill-ups for new rewards members, while Maverik has provided 15 cents off per gallon since May 12, with the promotion ending on Labor Day.
Historical context
The last time gas prices approached current levels was in 2012, when the national average peaked at $3.82 per gallon during the Labor Day weekend. Since then, prices have remained below the $4 per gallon threshold during the holiday, despite periodic spikes in other seasons.
State-by-state breakdown (as of September 4)
Top 5 highest prices:
- Arizona: $4.52
- California: $4.49
- Nevada: $4.47
- Washington: $4.45
- Oregon: $4.43
Top 5 lowest prices:
- Mississippi: $3.76
- Louisiana: $3.78
- Texas: $3.80
- Arkansas: $3.82
- Oklahoma: $3.83