Just as the summer travel season comes to a close, Americans are facing the most expensive Labor Day gas prices on record, extending the squeeze on household budgets for millions hitting the road over the holiday weekend.
AAA says nearly 40 million Americans are expected to drive over the holiday, but they’ll be paying unprecedented prices at the pump.
The national average for regular gasoline reached $4.14 per gallon on Monday, up about 4 cents from last week and nearly 95 cents higher than a year ago.
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If that average holds, it will shatter the previous Labor Day record of $3.82, set in 2012, and mark the first time the national average has exceeded $4 per gallon during the holiday weekend.
The unusually high prices come even though gasoline demand typically falls after the peak summer driving season.
Normally, motorists begin to see relief at the pump after Labor Day as vacation travel winds down and fuel demand eases. This year, however, elevated crude oil prices tied to the conflict involving Iran have largely offset that seasonal trend.
Fighting in the region has raised concerns about disruptions to oil shipments through the Strait of Hormuz, a narrow waterway between Iran and Oman that carries roughly one-fifth of the world’s crude oil.
Those concerns have kept crude oil prices near $90 a barrel, preventing the seasonal decline in gas prices motorists usually see after Labor Day.
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A satellite view of the Strait of Hormuz, a critical choke point for global energy supply, connecting the Persian Gulf to the Gulf of Oman. (Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2025/Amanda Macias/Fox News Digital)
While the national average is $4.14, prices vary significantly by state.
California continues to have the nation’s highest average gas prices at $5.78 per gallon, followed by Washington at $5.47, Hawaii at $5.41, Oregon at $4.98, Alaska at $4.96, Nevada at $4.91, Idaho at $4.62, Arizona at $4.52, Utah at $4.42 and Montana at $4.38.
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At the other end of the spectrum, Indiana has the nation’s cheapest gas at $3.44 per gallon.
It is followed by Texas at $3.69, Oklahoma and Mississippi at $3.71, Louisiana at $3.75, Arkansas at $3.77, South Carolina and Kansas at $3.78, Alabama at $3.79 and Wisconsin at $3.80.
Whether motorists finally see relief in the weeks ahead will depend largely on crude oil prices. If tensions in the Middle East ease and oil prices retreat, drivers could begin to see the seasonal decline in gasoline prices that typically follows Labor Day.
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