National gasoline prices reach record high for Labor Day as Middle East conflict drives up costs for drivers
The national average for regular gasoline reached a record high of $4.15 per gallon heading into Labor Day, a 30% increase from the previous year. Diesel prices also hit a record high, averaging between $5.80 and $5.90 per gallon. These elevated costs are primarily attributed to the ongoing conflict in the Middle East, which has disrupted oil supply by hindering tanker transit through the Strait of Hormuz and damaging refineries in both the Middle East and Russia. In response to the supply constraints, the administration announced that it is taking steps to increase production and that markets forecast lower prices in the coming months. Energy Secretary Chris Wright noted that while prices are currently high, the marketplace expects a meaningful decrease in the price of gasoline. The high costs are impacting consumers and businesses alike, with many drivers cutting back on holiday road trips. While some drivers expressed frustration over the price at the pump, others noted that the transition to winter-grade gas in September will provide some relief, as it is generally cheaper to produce.
Sources
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Gasoline prices, over $4 per gallon, hit record high for Labor Day
CNBC
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Labor Day Gasoline Just Hit a Record. Here's What Comes Next
Crude Oil Prices Today | OilPrice.com
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We drove across the country twice, and kept the receipts. Here’s what it cost.
MS NOW
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Americans are still struggling with high gas prices. The pain will likely continue this fall
cnn.com