Labor Day gas prices hit record high as diesel surging costs hit drivers

Americans are feeling the pain at the pump this Labor Day weekend, with gas prices at record-breaking highs compared to past Labor Days. 

Labor Day gas prices

By the numbers:

The average price of regular gas was $4.14 a gallon heading into the holiday, nearly a dollar higher than last year and well above the Labor Day weekend record of $3.82 from 2012, according to AAA motor club.

Global conflict and gas prices

Big picture view:

Prices shot up after the U.S. and Israel attacked Iran in February and have not settled down since. Crude oil traffic through the key Strait of Hormuz has plunged, and Iran has refused to reopen the waterway.

And it’s not just a Middle East problem. Ukrainian drone attacks on Russian refineries are squeezing diesel supplies. Chinese refiners are seeing declining outputs as well, said Matthew Metzgar, a clinical professor of economics at UNC Charlotte.

The other side:

The national average for regular gas prices is still well below the record of $5.02 a gallon set in June 2022.

Diesel prices hit record highs

Dig deeper:

Diesel prices hit a national average of $5.85 a gallon Friday, a record.

Trucks and other freight delivery systems use a lot of diesel, and that increased transportation cost is being passed on to consumers, whether at the grocery store or through package delivery services.

What they're saying:

"Yes, they’re higher today, but we’re doing everything we can to push them down," Energy Secretary Chris Wright said Sunday on ABC’s "This Week," but offered few specifics on how the Trump administration plans on doing that. 

EconomyTransportation