Gas Prices Expected to Hit Record High on Labor Day

A new forecast from GasBuddy predicts that average gas prices on Labor Day this year will reach $4.03 per gallon, marking the highest price on record for the holiday.

This is a significant increase of 87 cents compared to last year's prices and surpasses the previous record of $3.83/gal set in 2012.

The rising costs are attributed to ongoing geopolitical tensions that have disrupted global oil markets, particularly through the Strait of Hormuz, a critical corridor for crude oil, as well as drone strikes on Russian refineries which have reduced refining capacity abroad.

This has led to record-high refining margins and may push diesel prices to new highs in the coming weeks.