What happened
On Monday, the national average price for regular unleaded gasoline in the US reached $4.15 per gallon, the highest ever recorded for Labor Day, according to AAA data.
This price is about 30% higher than the $3.20 average drivers paid a year ago, and it surpasses the previous Labor Day record of $3.82 set in 2012.
Diesel prices also surged to $5.90 per gallon on Monday, up from $3.71 a year earlier, and had already hit an all-time high last week.
Why it matters
Labor Day weekend is one of the busiest travel periods of the year, so higher gas prices directly increase the cost of road trips for millions of Americans.
The price spike is driven by high crude oil costs, which are influenced by global supply disruptions, including conflicts in the Middle East and Ukraine, as well as refinery outages.
While a switch to winter-grade gasoline in September may offer some relief, the global oil supply situation remains a key factor in future price trends.
Key facts
AAA data shows the national average for regular gas was $4.15 per gallon on Monday, a record for Labor Day.
Gas prices are about 30% higher than a year ago, when the average was $3.20 per gallon.
Diesel prices reached $5.90 per gallon on Monday, compared to $3.71 a year earlier.
WTI futures traded above $92 per barrel, up from about $67 before the Middle East conflict began.
EIA data indicates US gasoline inventories were 6% below average as of August 28.
What to watch next
The EPA has allowed winter-blend gasoline to be sold starting September 1, which could lower prices due to cheaper production costs.
Experts are watching whether the US and Iran can reach an agreement to reopen the Strait of Hormuz, which would ease supply constraints.
Global oil supply conditions, including refinery disruptions, will continue to influence gasoline prices in the coming weeks.