AAA Reports Labor Day Weekend Gas Prices Reach Record High

This weekend’s gas prices are set to be the highest ever for a Labor Day weekend, AAA said in a Thursday (Sept. 3) press release.

The national average gas price is $4.14, which is above the current Labor Day record of $3.82, which was set on Sept. 3, 2012, according to the release.

“Even though gasoline demand decreases this time of year, typically bringing down gas prices, this year is different due to the high cost of crude oil,” AAA said in the release.

Crude oil prices have been pushed up by continued volatility in the Strait of Hormuz, per the release.

Thursday’s national average gas price of $4.1436 was up from $4.0997 one week ago, $4.0946 one month ago and $3.1903 one year ago, according to AAA’s fuel prices page.

The price rose even as gasoline demand decreased from last week’s 9.04 million barrels per day to the current 8.92 million, the page said, citing data from the Energy Information Administration.

AAA reported Aug. 24 that many people travel during Labor Day, which is the last long holiday weekend of summer.

The University of Michigan’s Surveys of Consumers’ final results for August found that consumer sentiment fell about 6% from July and dropped 11% below August 2025 due to continued worries about inflation in general and gas prices in particular.

“With ongoing policy uncertainty including the Iran conflict, consumers anticipate further increases in gasoline prices both in the short and long run,” Surveys of Consumers Director Joanne Hsu said when announcing these findings. “In addition to the pocketbook issues that have been central to consumers’ views of the economy, they are increasingly worried that prospects elsewhere in the economy could be weakening.”

Affirm Co-Founder and CEO Max Levchin told CNBC’s Squawk Box on Aug. 28 that gas prices are weighing on consumers and that they are coming to the buy now, pay later provider to help manage the impact of inflation.

“In times of inflation, we see more demand because folks are budgeting,” Levchin said. “They’re more thoughtful about how they want to use the money, and we’re there to help.”

The PYMNTS Intelligence report “Wage to Wallet™ Index: When the Drive Isn’t Worth the Pay: How Fuel Costs Reshape Who Can Afford to Work” found that fuel prices change not only what consumers spend, but whether they can participate in the labor market.

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