Gas Prices Hit Record Highs Ahead of Labor Day
National gas prices reached record August highs of over $4 per gallon, driven by global instability and high holiday demand.
National average gasoline prices reached record highs in August 2026, marking the first time the average remained above $4 per gallon every day of the month. AAA reported the national average reached $4.10 per gallon as motorists began traveling for the Labor Day holiday, with GasBuddy predicting the holiday weekend would be the most expensive on record at an average of $4.03 per gallon.
Price surges were driven by elevated crude oil costs and global instability, specifically conflicts involving Iran and volatility in the Strait of Hormuz, as well as strikes on Russian refineries. In Pennsylvania, prices hit $4.21 per gallon, while Tennessee averages rose to $3.66. Data from the U.S. Energy Information Administration showed domestic gas supply decreased to 206.8 million barrels while demand rose to 9.04 million barrels per day.
Amid these costs, President Donald Trump announced a partnership with private business to secure U.S. majority control of over 65 billion barrels of Venezuela's proven oil reserves. Meanwhile, the Georgia Department of Public Safety warned of heavy congestion and increased law enforcement presence to combat aggressive driving during the peak travel window. Travelers are paying 20% more for holiday travel this year across airfare, hotels, and fuel compared to previous years.
