Gas prices are surging just before Labor Day, as diesel nears an all-time high

September 3, 2026 / 3:41 PM EDT / CBS News

Gasoline prices are surging ahead of Labor Day, with AAA predicting travelers will face the highest pump prices on record for the holiday weekend amid ongoing conflict in the Strait of Hormuz.

The national average for regular gasoline reached $4.14 a gallon Thursday, up 4 cents from a week earlier, according to AAA data. Diesel averaged $5.78 a gallon, just below its record of $5.81 set in June 2022.

Gas prices have never eclipsed $4 per gallon on Labor Day, the motor club noted.

"Even though gasoline demand decreases this time of year, typically bringing down gas prices, this year is different due to the high cost of crude oil," AAA said in a report.

Although inflation has cooled from its post-pandemic highs, high fuel costs are squeezing consumers and businesses alike. Since the start of the Iran war, higher gas and diesel prices have cost Americans more than $741 per household, according to a tracker from Brown University.

Soaring diesel costs are raising expenses for trucking, construction, agriculture and other industries that rely on heavy-duty vehicles and machinery.

"Diesel is just a couple of ticks away from hitting a…

Original source: https://www.cbsnews.com/moneywatch/