Americans hit with record-high Labor Day Weekend gasoline prices

Labor Day Weekend is expected to see record-high gasoline prices in the United States, driven by the ongoing war in the Middle East and geopolitical tensions. The national average price of gasoline is projected to reach $4.03 per gallon, surpassing the previous record of $3.83 per gallon set in 2012, according to GasBuddy analyst Patrick De Haan. This marks the first time a national average gasoline price may exceed $4 per gallon on Labor Day.

Gas prices have surged to nearly a dollar above last year's average, with the national average standing at around $4.13 per gallon on Thursday. Analysts warn that $4 per gallon is a significant concern for consumers, as gasoline prices can quickly impact perceptions of the broader economy. President Donald Trump has pledged to lower energy costs and has criticized refiners and fuel retailers for profiting from elevated pump prices.

The recent increase in gasoline prices coincides with a rise in crude oil prices, which jumped back above $90 a barrel after renewed military action between the U.S. and Iran heightened concerns about disruptions to global crude supplies. Distillates, including diesel and heating oil, have also seen price increases due to ongoing attacks on Russian refining facilities and concerns about supply disruptions.

Consumers are feeling the impact of these high prices, with some cutting back on travel plans and others struggling to afford even routine expenses. Retail fuel prices and crude oil typically move in the same direction, as crude feedstock is the dominant cost for producing the fuel. With few operational and policy levers available to boost fuel supplies, the situation appears dire for many Americans heading into Labor Day Weekend.