Labor Day Gas Prices Set a Record as Average Fuel Costs Top $4

Average gas prices have climbed above $4, putting drivers on track for the most expensive Labor Day ever at the pump, according to AAA data cited by Business Insider. The national average hit $4.15 on Friday after peaking in May at roughly $4.56 per gallon and averaging $4.09 through the end of August. AAA said the national average had never previously been above $4 per gallon on Labor Day.

Business Insider links the price jump to the Iran war that began in late February and the subsequent closure of the Strait of Hormuz. AAA said gasoline demand usually declines around this time of year, which typically helps bring prices down, but high crude oil costs are making this year different. The prior Labor Day record cited by AAA was $3.82, set on September 3, 2012.

Business Insider used AAA data to compare gas prices in the 10 priciest and 10 cheapest states from August 27 to September 4, while also comparing September 4 prices with the prior year. Among the higher-priced states shown in the provided article content were Utah, Wyoming, Arizona, Idaho, Oregon, Nevada, and Alaska, with Oregon and Alaska listed at $5.00 on September 4, 2026. The article’s description notes that Southern states are among the cheapest places to fill up.

Travelers still have a few options to reduce costs where promotions apply. Business Insider reported that Chevron offered new rewards members $1 off per gallon for up to five fill-ups at participating stations. Maverik, which has stores across the Midwest and western US, offered eligible customers 15 cents off per gallon since May 12, with the promotion ending on Labor Day.