GasBuddy, North America’s trusted fuel savings platform for more than 25 years, released its annual Labor Day gas price forecast, predicting that average gas prices on the last summer holiday weekend of 2026 will be $4.03 per gallon, 87 cents higher than in 2025, and the highest Labor Day price at the pump on record in nominal terms, surpassing the previous record of $3.83/gal in 2012.

While it will be the most expensive Labor Day weekend on record, prices remain volatile amid geopolitical tensions that have disrupted global oil and refined product markets. Conflict involving Iran has threatened traffic through the Strait of Hormuz, a critical corridor for the world’s crude oil, while drone strikes on Russian refineries have reduced refining capacity abroad, tightening worldwide supplies of gasoline, diesel and jet fuel. These disruptions have disconnected crude oil prices from fuel prices, pushing refining margins, or “crack spreads,” to record levels, a dynamic that could keep fuel prices elevated this fall and may push diesel prices to record highs in the weeks ahead.

5 Years of Average Labor Day Gas Prices:

• 2022: $3.79
• 2023: $3.77
• 2024: $3.29
• 2025: $3.16
• 2026: $4.03 (projected)

For gasoline prices, Labor Day is the last summer holiday, and seasonal tailwinds will likely bring some relief in the weeks ahead. Gasoline demand, after peaking in mid-July, will continue to decelerate, giving the market needed breathing room, and the change back to cheaper winter gasoline will happen in much of the nation after Sept. 15th, also providing price relief. With ongoing geopolitical tensions, some of the relief may take longer to appear.

“It’s been a challenging year for motorists, with constant ups and downs at the pump that stayed elevated into this final summer holiday, though relief may lie ahead if tensions ease,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Last year saw the cheapest Labor Day since 2020, but the pendulum has swung wildly this summer. This year has been less about typical supply and demand, and more about uncertainty over how global tensions will affect the availability of crude oil and refined products.”

GasBuddy recommends drivers looking to save money on travel costs over Labor Day weekend shop around for the best gas prices along their route, using a tool like the GasBuddy app. Drivers can also become a Pay with GasBuddy+ member to save up to 33 cents per gallon off with an activated Flash Deal in the GasBuddy app.