Laura Olivas | Moments | Getty Images
Higher gas prices at the end of summer mean drivers are paying more for gas on Labor Day than ever before.
Additionally, the holiday weekend is one of the busiest weekends of the year, which means road trip prices may be higher than usual, according to car rental company Hertz.
The national average for a gallon of regular unleaded gasoline on Monday was $4.15, the highest price ever for the holiday, according to AAA.
AAA says prices have never exceeded $4 a gallon on Labor Day. The previous highest price was $3.82, achieved on September 3, 2012.
And while the price per gallon is down from the 2026 high of $4.56 set in May, it’s still about 30% higher than the average $3.20 drivers paid a year ago, AAA said.
“Typically, gasoline demand declines after the summer driving season, often leading to lower prices, but higher oil prices this year offset that seasonal trend,” said Brittany Moyet, a spokeswoman for AAA.
Meanwhile, diesel prices also hit record highs ahead of the long holidays. Monday’s price was $5.90 a gallon, compared to $3.71 a year ago, according to AAA.
Global oil supplies remain constrained
Ships near the Strait of Hormuz seen from Musandam, Oman, on August 31, 2026.
Stringer | Reuters
West Texas Intermediate crude oil futures, the benchmark for U.S. oil prices, were trading at about $92 a barrel as of 9:30 a.m. ET Monday, compared with about $67 a barrel before the start of the Iran war on Feb. 28. Similarly, Brent crude oil futures, the international benchmark, were trading at about $97 a barrel on Monday, up from about $72 a barrel before the war.
Oil prices have been volatile during the conflict as oil tankers have been blocked from transiting the Strait of Hormuz, tightening global supplies.
Crude oil is the main raw material for gasoline and is generally the largest component of retail prices.
According to the U.S. Energy Information Administration, an estimated 4.9 million barrels per day of crude oil and liquid petroleum were transported through the strait in the second quarter of this year, down significantly from an average of 21.6 million barrels per day in the final quarter of 2025, before the Iran conflict began.
Due to the Iran war and the Russia-Ukraine war, refineries have also shut down, affecting gasoline supplies.
“There are still supply disruptions in the Middle East, and at the same time refineries in both the Middle East and Russia have been affected by conflicts in those regions, reducing the supply coming into the market,” said Andy Lipow, president of Lipow Oil Associates in Houston, a consulting firm specializing in refinery operations.
U.S. gasoline inventories were 6% below average for the week ending Aug. 28, according to the EIA.
Winter blended gas could drive up pump prices
However, Lipow said higher gas prices could become a mitigating factor in the near future.
“The good news for consumers is that the industry’s transition to winter gas (in September) will provide some relief at the pump,” Lipow said.
EIA says winter gasoline is generally cheaper because it costs less to produce. Summer gas is formulated with a more expensive blend and typically ends production on September 15th.
In an effort to increase supply and lower prices this year, the Environmental Protection Agency announced on Aug. 20 that winter blended gas can be sold starting Sept. 1, effectively ending the summer blending requirement early.
But experts say global oil supplies remain a key factor in determining gasoline price trends.
“The market is waiting to see if the U.S. and Iran reach some sort of (agreement) to open the Hurms Strait to full navigation,” Lipow said.
