The national average gasoline price surged to $4.15 per gallon on Labor Day (local time), according to AAA, as the summer driving season ended with no relief in sight for motorists. Pictured is a gas station in Brooklyn, New York, where the state average also hit an all-time high of $4.26 per gallon. [AFP]
The national average gasoline price surged to $4.15 per gallon on Labor Day (local time), according to AAA, as the summer driving season ended with no relief in sight for motorists. Pictured is a gas station in Brooklyn, New York, where the state average also hit an all-time high of $4.26 per gallon. [AFP]

US gasoline prices have hit their highest level ever recorded for the Labor Day holiday.

CNBC, citing data from the American Automobile Association, reported that the national average gasoline price climbed to $4.15 per gallon on Labor Day on Monday (local time).

AAA said it was the first time on record that gasoline prices had exceeded $4 on Labor Day. The previous record for the holiday was $3.82, set on Sept. 3, 2012.

Labor Day in the United States falls on the first Monday of September each year, traditionally marking the end of the summer vacation season — a period when gasoline demand typically eases and prices tend to stabilize.

"Typically, as the summer driving season winds down, we see a decrease in gasoline demand, which often leads to lower prices," an AAA spokesperson said. "This year, however, rising crude oil prices have offset that seasonal trend."

Diesel prices also hit an all-time high the same day, reaching $5.90 per gallon — a sharp increase from $3.71 on Labor Day last year. AFP said the surge in fuel costs since the outbreak of the Iran war is piling pressure on President Donald Trump ahead of the midterm elections.

Axios reported that American consumers have paid an additional $100 billion due to higher energy prices stemming from the Iran war. Brown University's Watson School found through its "Iran War Energy Cost Tracker" that US consumers have already absorbed $100 billion in extra costs, with the burden growing by roughly $1 million every two minutes.

The added costs have been driven by rising gasoline and diesel prices since the war began. The average American household has spent an additional $760 as a result. More recently, the cost burden from rising diesel prices has been growing faster than that from gasoline.

By state, Texas consumers bore the heaviest toll, spending about $11 billion more on gasoline and diesel. California ranked second with roughly $8 billion in additional spending, while Florida also made the list of hardest-hit states with about $5 billion in extra costs.

Looking ahead, the volume of crude oil exports from the Middle East is seen as the single biggest factor shaping US energy costs. The trajectory of the Ukraine war — where Ukrainian forces have recently intensified strikes on Russian energy infrastructure — could also directly affect global diesel markets and, by extension, domestic energy prices in the United States.

"Energy inflation affects the entire economy, and the recent spike in diesel prices in particular risks having a dramatic impact on freight and travel over the coming weeks and months," Axios said. With less than two months until the midterm elections, it added, calming voter anger will be no easy task.


kate01@heraldcorp.com