Overview
- The national average for regular gasoline reached about $4.14–$4.15 per gallon over the Labor Day weekend, which AAA and multiple outlets called a record for the holiday, while diesel averaged roughly $5.85–$5.90 per gallon.
- Energy markets pushed prices higher after crude stayed near $90 a barrel because of fighting linked to Iran and fewer tankers passing the Strait of Hormuz, and the EIA reports crude flows through that route are sharply lower than late 2025.
- U.S. refiners are operating close to full capacity and distillate inventories are below normal levels, leaving little spare refining output to quickly boost supplies of gasoline or diesel.
- Prices varied widely by state, with California averaging about $5.78–$5.86 per gallon and Indiana near $3.44, and the higher pump and diesel costs added roughly $13 to a typical midsize sedan fill-up while raising freight and grocery costs.
- Near-term relief is uncertain because it depends on geopolitics and crude prices, though the EPA allowed winter-blend gasoline sales earlier this month to slightly expand supply and could help ease prices if demand falls after the holiday.