Gas prices throughout the United States are anticipated to reach unprecedented levels this Labor Day, except in Indiana. Drivers will likely face an average price of $4.03 per gallon this holiday weekend. This reflects an increase of 87 cents compared to the previous year and marks the highest Labor Day fuel price on record, according to GasBuddy.
Although this prospect seems grim, it might offer slight relief for Americans, as the current national average already exceeds this amount. On Thursday morning, the average gas price stood at $4.144 per gallon. This is a rise from $4.100 a week earlier, $4.095 a month earlier, and $3.190 a year ago, as reported by the American Automobile Association (AAA).
California’s average is the highest at $5.782 per gallon, followed by Hawaii and Washington, with averages beyond $5. Indiana registers the lowest state average at $3.448.
Average Gas Price This Labor Day
GasBuddy’s forecasts on Tuesday indicated that Labor Day weekend would see an average gas price of $4.03 per gallon, an 87-cent rise over last year and the highest nominal record. Previously, the 2012 record of $3.83 per gallon was due to Middle East tensions and global supply challenges.
Since the onset of the war in Iran, U.S. drivers have faced escalating prices due to market disruptions and the closure of the Strait of Hormuz. Before the joint U.S.-Israel strike on Iran on February 28, the national average gas price was $2.98 per gallon.
Patrick De Haan from GasBuddy noted the year’s challenges at the pump and expressed hope for relief if tensions subside. Previously, Labor Day in 2022 offered the lowest prices since 2019, but this year’s price fluctuation contrasts with typical supply dynamics and reflects geopolitical uncertainties.
Price Comparison: This Year vs. Last Year
In 2023, the national average gas price for Labor Day was $3.19 per gallon, noticeably lower than current prices. Achieving this was a success for President Donald Trump, who had pledged to reduce living costs and gas prices following significant increases under the Biden administration.
The national average on Labor Day in 2024 was $3.29 per gallon, higher than in 2023 and 2022. This year’s forecast surpasses prices from the past four years.
Gas Prices Under Biden
Gas price increases became significant issues during Biden’s term, impacting his 2024 campaign. When he took office in January 2021, prices averaged $2.40 per gallon, rising above $3 by year’s end. Mid-2022 saw a peak at $5.06 per gallon due to global disruptions.
Prices dropped below $4 in 2023 and 2024, with averages of $3.52 and $3.30 per gallon, respectively. Lower crude oil prices and improved inventories helped reduction efforts.
Gas Prices in Trump’s First Term
During Trump’s initial presidency (January 2017-January 2021), gas prices remained historically low due to stable oil markets and COVID-19-related decreased demand. His administration saw an average gas price of $2.48 per gallon.
In his 2024 campaign, Trump critiqued Biden for rising gas costs, promising to reduce prices. Despite the war in Iran, prices briefly fell below $3 before the conflict escalated. Trump defended higher gas costs, expressing the importance of strategy over price in a rally on August 13.
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