Labor Day Gas Prices Poised to Hit Record High

Motorists planning to hit the road for Labor Day may face the highest gas prices on record, according to GasBuddy. The national average is projected to be $4.03 per gallon, which is 87 cents higher than last year's price and surpasses the previous record of $3.83 set in 2012.

The high prices are due to ongoing geopolitical tensions that have disrupted global oil supplies. The conflict involving Iran has made it difficult for oil to pass through the Strait of Hormuz, one of the world's busiest shipping channels. Meanwhile, drone strikes on Russian refineries have reduced refining capacity abroad, further tightening global supplies.

GasBuddy notes that these disruptions have caused crude oil prices to become disconnected from fuel prices, leading to record-high refining margins. This dynamic could keep fuel prices elevated and may even push diesel prices to new records in the coming weeks.

However, GasBuddy suggests that drivers may see some relief at the pump after the Labor Day weekend. As gasoline demand continues to decelerate, the market is expected to gain breathing room, and cheaper winter gasoline will become available in many parts of the country.