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Labor Day gas prices reached a holiday record on Monday, September 7. The national average climbed to about $4.15 per gallon of regular gasoline, according to AAA.
The price surpassed the previous Labor Day record of $3.82, set in 2012. However, it remains below the all-time national record of $5.02 from June 2022.
Labor Day Gas Prices Rise Nearly $1 From 2025
Regular gasoline averaged $4.1505 per gallon nationwide on Labor Day. That was nearly $1 higher than the average of about $3.20 one year earlier.
The increase made this the first Labor Day with a national average above $4. Gas prices had already remained elevated throughout much of the summer.
Rising fuel costs may affect more than holiday travel. Families with long commutes face higher weekly expenses. Businesses may also pay more to transport products and provide services.
Diesel prices have created additional pressure. The national diesel average reached a record $5.85 per gallon ahead of the holiday.
Higher diesel costs can raise expenses for trucking, farming and construction. Those increases may eventually reach consumers through higher delivery and retail prices.
Texas Drivers Pay Less Than National Average
Texas motorists continued to pay less than the national average. AAA reported a statewide regular gasoline average of about $3.67 per gallon Monday.
Still, that price was roughly 92 cents higher than one year earlier. Texas drivers paid an average of about $2.75 per gallon during the same period in 2025.
Houston’s average stood near $3.63 per gallon. That was also approximately 92 cents higher than the city’s year-ago average of $2.71.
Meanwhile, diesel reached a record average of about $5.50 across Texas. Houston’s diesel average climbed to approximately $5.36, another local record.
Fuel prices vary by location because of taxes, distribution expenses and nearby supply. Individual stations may charge considerably more or less than regional averages.
Global Conflict and Refinery Strain Drive Prices
Energy analysts have connected this year’s higher prices to the war involving the United States, Israel and Iran. Oil shipments through the Strait of Hormuz have fallen sharply during the conflict.
The waterway normally handles a major share of global petroleum shipments. Reduced traffic has limited supplies and created uncertainty across energy markets.
Refinery conditions have added pressure. U.S. refineries were operating at about 98% capacity, according to the Associated Press. Extreme Texas heat and possible Gulf Coast hurricanes could disrupt production further.
Normally, gasoline becomes less expensive after Labor Day. Travel demand declines, and refineries begin producing cheaper winter-grade fuel.
Some market indicators suggest prices could fall during the coming months. However, military developments, refinery outages and severe weather could quickly change that outlook.
Drivers can compare prices through fuel apps and avoid stations located directly beside major highways. Even small differences can produce meaningful savings for families with long commutes.
For now, Texas motorists remain below the national average. However, record Labor Day gas prices and rising diesel costs continue to strain household and business budgets.
