WASHINGTON DC. WA, September 8, 2026 — According to AAA, the national average diesel price reached $4.14 a gallon Monday. Diesel prices hit an all-time high on Friday, as millions of Americans took to the road for the holiday. Comprehensive tracking of retail fuel averages across the country is published daily by AAA Gas Prices.
Breaking a Longstanding Record
The old Labor Day record was $3.82 a gallon from 2012. The average this year is almost a dollar more than what drivers were paying last Labor Day. Diesel jumped to nearly $5.90 a gallon from $3.71 a year ago, the highest ever on record.
GasBuddy predicted a record price before the holiday weekend started. Pump prices were swinging wildly from last year’s lows, analyst Patrick De Haan said. He observed that last Labor Day had been the cheapest since 2020.
“This summer marked a stark reversal to three consecutive years of price cooling,” De Haan said. It left many drivers unprepared for costs nearing levels not seen since 2012. This year’s volatility, he said, was driven less by normal supply and demand than uncertainty.
What’s Driving the Spike
Prices rose in response to US and Israeli strikes against Iran earlier this year. The war interrupted the flow of crude oil traffic through the Strait of Hormuz, a key shipping lane. Since then, Iran has stalled in reopening the waterway entirely for commercial shipping. Official energy supply metrics and global petroleum data are tracked by the U.S. Energy Information Administration.
Drone strikes on Russian refineries have reduced refining capacity globally. Together, these events put a stranglehold on global supplies of gasoline, diesel and jet fuel all at once. In a television appearance last Sunday, Energy Secretary Chris Wright said prices would remain elevated. Executive policies regarding domestic energy production are overseen by the U.S. Department of Energy.
Before dipping over the summer, prices had already topped $4.56 a gallon back in May. The full recovery, analysts say, will largely depend on how the Middle East conflict plays out. Further disruptions could raise prices again entering the fall season.
TOP STATES PAYING THE HIGHEST
California drivers confronted the nation’s most costly average, at $5.86 a gallon Monday. Washington came in at a close second overall, with prices averaging $5.52 per gallon statewide. A few other states saw their average remain above the 5-dollar mark, including Alaska, Hawaii and Oregon.
The lowest statewide average in the nation was Indiana at $3.43 a gallon. That divide between coastal and inland states has grown significantly this summer. That gap is partly due to regional refining capacity, and state fuel taxes help sustain it.
Strict fuel blend requirements usually yield higher prices in West Coast states. Those markets are also exposed to supply shocks because of limited regional refinery capacity. Drivers in that area are accustomed to paying costs well above the national average.
Travelers Undeterred by the Cost
AAA predicted a record 34.1 million Americans would travel at least 50 miles over the weekend. About 28.7 million of them expected to take a road trip instead of flying or using other transportation. The volume is up from a year ago despite higher pump prices. National highway infrastructure and traffic trends are monitored by the Federal Highway Administration.
Rental car company Hertz reported that the holiday continues to be among the busiest travel weekends of the year. Higher fuel costs haven’t materially impacted travel plans for the majority of families this year. Many travelers reported that they had budgeted for elevated fuel expenses well in advance.
The administration was doing everything it could to push prices back down, Wright said. He did not provide a specific timeframe for when relief would arrive. AAA’s Labor Day travel forecast suggests prices could soften as soon as tensions in the Middle East subside.
