US gasoline prices set for record Labor Day as Middle East war lifts energy costs

  • US gasoline prices were forecast to reach a record $4.03 per gallon on Labor Day.
  • GasBuddy recorded about $4.13 per gallon Thursday, nearly $1 above last year.
  • US gasoline inventories fell 1.2 million barrels to 205.7 million barrels last week.

US gasoline prices were on track for a record-high Labor Day as renewed military action between the US and Iran pushed crude oil back above $90 a barrel and raised concerns about disruptions to global supplies. GasBuddy analyst Patrick De Haan forecast a national average of $4.03 per gallon for Labor Day, above the previous holiday record of $3.83 set in 2012. GasBuddy put the average at about $4.13 on Thursday, nearly $1 above a year earlier, while AAA had reported $4.15 on September 4, the highest price recorded for September. Different trackers and forecast dates produced slightly different readings. High gasoline prices have become a persistent political concern for President Donald Trump and his Republican Party as campaigns begin for midterm Congressional elections. Trump has pledged to lower energy costs and recently criticized refiners and fuel retailers over elevated pump prices, although he also said on August 14 that Americans should accept paying a tiny bit more to prevent Iran from obtaining a nuclear weapon. Supply conditions have offered little relief: US refinery utilization reached 98%, gasoline inventories fell 1.2 million barrels to 205.7 million, and refined-products exports rose more than 10% from a year earlier. Diesel prices also reached a record, while AAA expected Labor Day airfares to be 20% higher than a year earlier. Consumers in several states were cutting back on driving and holiday travel as fuel and grocery costs strained household budgets.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.