Increasing Gas Prices Across the Nation
Gas prices are anticipated to reach unprecedented levels on Labor Day. Most states across the country will see a significant rise in fuel costs, following weeks of increases triggered by the outbreak of war in Iran. Drivers can expect an average gas price of $4.03 per gallon over the Labor Day weekend. This marks an 87 cents increase compared to last year, the highest recorded Labor Day gas price ever, according to GasBuddy.
Despite this grim projection, current national averages exceed these anticipated figures. As of Thursday morning, the American Automobile Association (AAA) reported the national average gas price at $4.144 per gallon, higher than previous weeks and months. California leads with the highest state gas prices at $5.782 per gallon, followed by Hawaii at $5.410 and Washington at $5.472.
Indiana’s Low Gas Prices
Drivers in Indiana enjoy the lowest statewide average at $3.448 per gallon. The predictions by GasBuddy indicate a national average of $4.03 per gallon for Labor Day. This price increase continues a trend that began with rising geopolitical tensions due to the war in Iran.
Before the February 28 joint strike by the U.S. and Israel on Iran, gas prices in America averaged $2.98 per gallon. The closure of the Strait of Hormuz further disrupted supply chains, contributing to the current price surge. Patrick De Haan, head of petroleum analysis at GasBuddy, notes that price volatility may decrease if global tensions ease.
Price Comparisons to Previous Years
Last year’s Labor Day gas prices averaged $3.19 per gallon. This reflects nearly a dollar decrease in comparison to current rates, according to AAA data. Under Donald Trump’s administration, gas prices on Labor Day reached $3.29 per gallon in 2024. Compared to previous years, 2023 saw a higher average of $3.77 per gallon while 2022 recorded $3.79 per gallon.
Gas prices during Joe Biden’s presidency saw a significant increase. When he took office in January 2021, gas prices stood at $2.4 per gallon. By the end of the year, they exceeded $3 per gallon. June 2022 marked the highest average of $5.06 per gallon due to global disruptions.
Gas Prices Under Trump Administration
During Trump’s first term, gas prices averaged around $2.48 per gallon due to stable oil markets and decreased demand caused by COVID-19 lockdowns. The low demand resulted in lower prices, with averages of $2.42 per gallon in 2017, $2.72 in 2018, $2.60 in 2019, and $2.19 in 2020.
This historical record allowed Trump to criticize Biden for elevated gas prices during his administration. In his 2024 presidential campaign, Trump promised relief by aiming to reduce gas prices below $2 a gallon.
Trump stated, “I did the right thing,” during a political rally in Garden City. His focus remains on prioritizing security by limiting nuclear capabilities of hostile nations, despite higher fuel costs.