Drivers heading out for Labor Day weekend are facing what could be the highest gas prices ever recorded for the holiday, with the national average climbing above $4 a gallon, according to AAA.
The national average for a gallon of regular gasoline stood at $4.14 Thursday, up about 4 cents from a week ago and nearly 95 cents from $3.19 a year ago, AAA said.
AAA said the national average has never exceeded $4 a gallon on Labor Day. The current holiday record is $3.82 per gallon, set Sept. 3, 2012.
The organization attributed this year’s elevated prices largely to crude oil costs, which have been driven higher by continued volatility in the Strait of Hormuz. Crude oil prices have been trading around $90 per barrel.
Gasoline demand typically declines at this point in the year, helping push prices lower. However, AAA said high crude oil costs have outweighed the seasonal decline in demand this year.
New data from the U.S. Energy Information Administration showed gasoline demand decreased from 9.04 million barrels per day to 8.92 million barrels per day last week. Domestic gasoline supplies fell from 206.8 million barrels to 205.7 million barrels, while gasoline production remained at an average of 9.8 million barrels per day.
West Texas Intermediate crude oil settled at $91.01 per barrel Wednesday, up 79 cents. U.S. crude oil inventories decreased by 4.5 million barrels to 424.5 million barrels, about 1% above the five-year average for this time of year, according to the EIA.
California had the nation’s highest average gasoline price at $5.78 per gallon, followed by Washington at $5.47 and Hawaii at $5.41. Indiana had the lowest average at $3.44.
AAA also reported that the national average price for electricity at a public electric vehicle charging station remained unchanged at 42 cents per kilowatt-hour.
New Jersey ranked among the 10 most expensive states for public EV charging, with an average of 45 cents per kilowatt-hour, according to AAA.
