Labor Day Gas Prices Hit Record Levels

Gas prices are surging ahead of Labor Day, with AAA predicting travelers will face the highest pump prices on record for the holiday weekend. The national average for regular gasoline reached $4.14 a gallon Thursday, up 4 cents from a week earlier.

Diesel averaged $5.78 a gallon, just below its record of $5.81 set in June 2022. Gas prices have never eclipsed $4 per gallon on Labor Day, according to AAA data.

High fuel costs are squeezing consumers and businesses alike, with higher gas and diesel prices costing Americans more than $741 per household since the start of the Iran war, according to a tracker from Brown University.

Energy analysts say fuel prices are likely to remain elevated until shipping resumes in the Strait of Hormuz, a key waterway between the Persian Gulf and the Gulf of Oman through which one-fifth of the world's oil supply flows.