US Gas Prices Hit Record High Ahead of Labor Day

The US is experiencing its highest Labor Day gas prices on record, driven by a combination of factors including the Iran War and refinery issues. According to AAA motor club, the average price of regular gas was $4.14 per gallon heading into the holiday, nearly a dollar higher than last year and exceeding the Labor Day weekend record of $3.82 from 2012.

Nicole Collins, who was planning to drive from Philadelphia to South Carolina for the holiday, said her family has been staying close to home this summer due to high gas prices. Collins noted that the current prices are exacerbated by her family's recent addition - a baby - which adds another expense on top of already skyrocketing gas costs.

Energy Secretary Chris Wright acknowledged that prices are higher than last year but stated that the administration is taking steps to increase production and forecasts lower prices in the coming months. However, Seng, a professor of energy finance at Texas Christian University, attributed the price surge to the Iran War and the Strait of Hormuz, which has seen crude oil traffic plummet.

While diesel prices have hit an all-time high of $5.85 per gallon, Wright emphasized that futures prices suggest a decrease in gas prices by November. However, several factors - including harsh Texas heat affecting refinery operations and Ukrainian drone attacks on Russian refineries - are making it difficult to predict future price movements.