GasBuddy forecasts that the average national gas price will reach a record high of $4.03 per gallon for the upcoming holiday. This projection is 87 cents higher than the price recorded in the previous year and exceeds the prior record of $3.83 set in 2012. In Pleasanton, the lowest available price for regular gasoline was approximately $5.27 per gallon as of Tuesday.
AAA reports that the average price for regular gas in California stands at $5.70 per gallon, while the national average was $4.10 on the same day. The fuel savings platform attributes these elevated costs to global supply disruptions, specifically the conflict in Iran and the blockage of the Strait of Hormuz. These events have restricted crude oil shipments and kept costs high.
Additionally, Ukrainian drone attacks on Russian refineries have reduced processing capacity, tightening supplies of gasoline, diesel, and jet fuel globally.
GasBuddy notes that these disruptions have caused refining margins to reach record levels. This dynamic may keep fuel prices high through the fall and could drive diesel prices to new highs in the coming weeks. Historically, Labor Day prices have been lower, averaging $3.79 in 2022, $3.77 in 2023, $3.29 in 2024, and $3.16 in 2025.
Patrick De Haan, head of petroleum analysis at GasBuddy, stated that the current year has been difficult for drivers due to persistent price fluctuations. He noted that the situation is driven more by uncertainty over global tensions and crude oil availability than by typical supply and demand factors.
