Americans faced the most expensive Labor Day at the pump on record as the summer travel season ended, with the national average for regular gasoline reaching $4.15 per gallon. This price shattered the previous Labor Day record of $3.82, set in 2012, and marked the first time the national average surpassed $4 during the holiday weekend. AAA estimated that nearly 40 million Americans drove over the holiday.
The elevated prices, up about 96 cents from a year earlier, occurred despite a typical seasonal trend that usually brings relief after Labor Day when demand eases. This year, however, crude oil prices near $90 a barrel, influenced by tensions surrounding Iran, have kept pump prices high. Fighting in the Middle East has raised concerns about potential disruptions to oil shipments through the Strait of Hormuz, a critical waterway for global crude oil transport.
This economic pressure poses a political challenge for President Donald Trump, whose administration campaigned on affordability and pledged to lower energy costs. The administration's efforts to expand domestic oil and gas production have made energy costs a key indicator of its economic agenda, especially with ongoing conflict in the Middle East impacting crude prices. With voters still contending with high everyday expenses, the record Labor Day gas prices are likely to make affordability a significant issue in the upcoming midterm elections in November.
Prices varied significantly across the country. California recorded the highest average gas prices at $5.78 per gallon, followed by Washington at $5.47 and Hawaii at $5.41. On the lower end, Indiana reported the nation's cheapest gas at $3.44 per gallon, with Texas at $3.69 and Oklahoma and Mississippi at $3.71.
Any future relief at the pump will largely depend on whether crude oil prices retreat from their current highs or remain elevated due to continued Middle East tensions. Treasury Secretary Scott Bessent has expressed optimism that gas prices could return to around $3 per gallon.