US gas prices on track to top $4 per gallon on Labor Day for the first time ever
US gas prices on track to top $4 per gallon on Labor Day for the first time ever
Athena DawsonSat, September 5, 2026 at 7:52 PM UTC
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U.S. gas prices are now at a record $4.15 per gallon, a level not seen before on Labor Day. -Credit:Reach Publishing Services Limited
U.S. gas prices are now mapped to hit a record $4.15 per gallon, a level not seen before on Labor Day.
The average price was $4.15 a gallon, compared with $3.20 at this time last year, according to the motor club AAA, which reports that gas has historically never been above $4 a gallon on Labor Day.
Gas prices have also gone up, but haven't skyrocketed as much as diesel prices.
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Diesel was recorded at an average of $5.85 per gallon, a record high for fuel prices, as the now sixth-month-long war between the U.S. and Iran continues to fracture the world’s oil supply chain.
Higher diesel prices have a domino effect across varying industries. Since diesel is used across various delivery networks, high prices translate into higher transportation costs for everyday goods. The higher costs can also trickle down to consumers as businesses attempt to have consumers absorb costs.
Gas prices have also gone up, but haven't skyrocketed as much as diesel prices.
It’s already been observed with added fees on online orders and packages in the mail, and higher costs may stick around for shockers.
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Groceries, particularly produce, meat, and other perishable goods, face an immediate price hike because farms rely on diesel-powered equipment to harvest food.
Experts warn that the diesel price hike can also affect other industries, such as clothing, cosmetics, and furniture.
Furthermore, some public transit buses and trains also run on diesel. Diesel generators are also commonly used for backup or emergency power, and even as a central electricity source in some parts of the world.
According to the AAA, American diesel prices are almost 56% more expensive than they were before the start of the Iran war launched by the U.S. and Israel in late February.
At the time, the national average was about $3.76 per gallon, according to AAA.
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However, prices quickly rose as crude oil, the main component of diesel and gasoline, climbed due to supply chain disruptions in the Middle East.
Most notable was the disruption to the Strait of Hormuz, a critical shipping corridor through which approximately 30% of the world’s oil travels.
The shutdown and subsequent fighting over the Strait have led to economic disruptions to the oil industry.
Source: “AOL Money”
