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🇺🇸 United States /Economy & Trade

Gas prices surge before Labor Day as diesel nears a record

From CBS News · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • The U.S. national average for regular gasoline reached $4.14 per gallon, while diesel averaged $5.78, just below its record of $5.81.
  • AAA expects the highest gasoline prices on record for a Labor Day weekend as conflict in the Strait of Hormuz disrupts oil markets.
  • Higher diesel costs are increasing expenses for transport, construction and agriculture and could raise consumer prices.

American drivers are facing record Labor Day fuel costs, with diesel only a few cents below its all-time high. The national average for regular gasoline reached $4.14 a gallon on Thursday, up four cents from a week earlier, according to AAA. Diesel averaged $5.78, just below the record $5.81 set in June 2022.

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

· AAAThe motor club explained why fuel prices were rising despite the usual seasonal decline in demand.

AAA said gasoline prices have never topped $4 a gallon over the Labor Day holiday. Demand normally falls at this time of year and brings prices down, but the organization said high crude oil costs have made this year different.

The increase is affecting more than motorists. Higher diesel prices are raising costs for trucking, construction, agriculture and other industries that use heavy vehicles and machinery. Since the start of the Iran war, increased gasoline and diesel prices have cost Americans more than $741 per household, according to a Brown University tracker.

Diesel is just a couple of ticks away from hitting a new record

· Patrick De HaanThe GasBuddy petroleum analyst assessed the diesel market.

“Diesel is just a couple of ticks away from hitting a new record,” GasBuddy petroleum analyst Patrick De Haan told CBS News. “That will happen.” Susan Bell of Rystad Energy said consumers would feel the increase through the goods they buy, including groceries and produce transported across the country.

That will happen.

· Patrick De HaanDe Haan predicted diesel prices would set a new record.

President Trump met U.S. oil refiners on Tuesday to discuss increasing capacity. He also reached a deal with Venezuela last week that would give the United States control of about 65 billion barrels of proven oil reserves. Energy experts cautioned that those fields could take years to produce enough crude to affect U.S. fuel prices. Analysts said prices are likely to remain high until shipping resumes through the Strait of Hormuz, a waterway between the Persian Gulf and Gulf of Oman that carries one-fifth of the world’s oil supply. Brent crude stood at $95.55 a barrel in afternoon trading Thursday, while the U.S. benchmark was around $91.50.

The everyday consumer will see higher diesel prices in the consumer goods they purchase

· Susan BellThe Rystad Energy executive described how fuel costs could feed into prices for transported goods.
About this summary

Originally published by CBS News in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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