US Gas Prices on Track to Smash September Record as Oil Prices Soar

U.S. gas prices are on track to break a record for September, according to an analysis by motor club AAA. Gas averaged $4.48 a gallon on Thursday and $4.30 for the month so far. This would be nearly 50 cents higher than the previous most expensive September in 2023.

The usual seasonal trend of decreasing gas prices around this time of year is being disrupted by geopolitical unrest and high oil prices, AAA said. Typically, autumn brings lower pump prices, but 'lingering volatility in the Strait of Hormuz and the high cost of crude oil are driving up pump prices,' AAA explained.

If September does break the record, it will mark the second consecutive month that gas prices set a new benchmark. August was the first time ever that gas prices were above $4 for the entire month. The most expensive gas market in the country is California at $6.23 per gallon, followed by Hawaii and Washington.

Texas is the cheapest market in the nation, with drivers paying $3.95 per gallon. Indiana and Mississippi are close behind. Rising diesel prices also have a trickle-down effect on the economy and consumers' daily spending. Diesel hit a record high of $6.53 on Tuesday and was $6.51 as of Thursday.