Gas Prices Expected to Reach Record Highs on Labor Day
Gas prices are predicted to hit record highs across most of the U.S. on Labor Day, excluding Indiana. This trend follows weeks of price hikes due to the onset of the war in Iran. On Labor Day weekend, the average gas price might be $4.03 per gallon. This is an 87-cent increase from last year, marking it as the highest Labor Day gas price on record, according to GasBuddy.
Current Gas Price Situation
As of Thursday morning, the national average gas price stood at $4.144 per gallon. This represents an increase from $4.100 a week earlier and $4.095 a month earlier. A year ago, the price was $3.190, as per the American Automobile Association (AAA). California tops the list with the highest gas price at $5.782 per gallon. Hawaii and Washington also have averages above $5, with prices of $5.410 and $5.472 per gallon, respectively. In contrast, Indiana drivers enjoy the lowest state average of $3.448 per gallon.
Labor Day Gas Price Predictions
GasBuddy forecasts an average price of $4.03 per gallon for the Labor Day weekend. This increase of 87 cents from the previous year would make it the highest on record for Labor Day. The prior high was $3.83 in 2012, driven by Middle East tensions and supply issues.
The rise in prices aligns with the war in Iran, starting with a joint strike by the U.S. and Israel in February. Before this conflict, the national average was $2.98 per gallon.
“It’s been a challenging year for motorists,” said Patrick De Haan from GasBuddy. “Ups and downs at the pump have persisted, though relief may come if tensions ease.”
Comparison to Previous Years
Last Labor Day, the price was $3.19 per gallon—a dollar less than now. Over the past few years, prices on Labor Day have varied: $3.29 in 2024, $3.77 in 2023, and $3.79 in 2022. These figures show the volatile nature of gas prices in recent years.
Gas Prices Under Joe Biden’s Administration
Gas prices surged significantly under Biden. When he took office in 2021, prices averaged $2.4 per gallon. By December, they exceeded $3. In June 2022, they peaked at $5.06, before declining below $4. Prices dropped in 2023, averaging $3.52, and fell further to $3.30 in 2024.
Gas Prices During Trump’s First Term
During Trump’s first term (2017-2021), gas prices were generally low, averaging $2.48 per gallon. They reached the lowest in 2020 at $2.19 per gallon due to pandemic-related demand drops.
Trump has used this record to criticize Biden over rising gas prices. During his 2024 campaign, Trump promised to keep prices below $2. However, since the war in Iran began, prices have increased by more than 30%.
In August, Trump asserted he would not apologize for higher gas prices, calling the increase a necessary measure to prevent a nuclear threat.