US Labor Day gas prices to hit record $4.03 a gallon, GasBuddy projects

September 4, 2026 at 04:15 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

US drivers will likely pay a record $4.03 a gallon for gasoline over the Labor Day weekend, GasBuddy projects. The surge follows President Donald Trump's war with Iran and record diesel and jet fuel costs. The administration has responded with refinery meetings, a Venezuela oil deal, and new air strikes, while Vice President JD Vance declined to set a timeline for prices to return to $3.

Key Facts

GasBuddy expects US gasoline prices to average at least $4.03 a gallon on Labor Day, compared with $3.16 a year earlier.
The projected Labor Day price would surpass the previous holiday record of $3.83 set in 2012.
US diesel prices hit an all-time high on Friday, and jet fuel costs have risen sharply, leading airlines to raise fares and baggage fees.
The Strategic Petroleum Reserve is at its lowest level since the early 1980s after a historic emergency release.
Vice President JD Vance said on Thursday he would not promise when gasoline prices would return to $3 a gallon.

Record Holiday Prices

GasBuddy projects that US gasoline prices will be at least $4.03 a gallon on Labor Day, up from $3.16 on the same holiday last year. That would exceed the previous Labor Day record of $3.83 set in 2012. Patrick De Haan, GasBuddy's head of petroleum analysis, said the pressure has lingered for six months, unlike the 2022 spike after Russia invaded Ukraine. When adjusted for inflation, the highest Labor Day gasoline price was $5.63 a gallon in 2008, using 2026 dollars.

Administration Response

President Trump this week called refining executives to the White House, unveiled an oil deal with Venezuela, and launched new air strikes in response to Iranian attacks on tankers in the Strait of Hormuz. The administration had already eased fuel delivery regulations and overseen a historic release from the Strategic Petroleum Reserve, which is now at its lowest level since the early 1980s. Dan Pickering, founder of Pickering Energy Partners, said the administration has already pulled most of the levers it can and will have a tough time affecting gasoline prices in the short term. Vice President JD Vance declined on Thursday to set a timeline for prices to return to pre-war levels, saying he would not promise when they would return to $3.

Fuel Market Strain

US diesel prices reached an all-time high on Friday, and jet fuel costs have skyrocketed, prompting airlines to raise airfare and baggage fees while cutting less profitable flights. US refiners are running as hard as they can to offset the loss of refining capacity elsewhere. Venezuela is unlikely to deliver a major increase in oil supplies for many years, perhaps not until 2035.