Another Week of Rising Fuel Prices, and for the First Time in History, $4 Gas Could Greet Drivers on Labor Day
by: GasBuddy
Published: August 24, 2026
BOSTON...he nation’s average price of gasoline has risen 2.9 cents over the last week and stands at $4.05 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 5.0 cents from a month ago and is 92.6 cents per gallon higher than a year ago. The national average price of diesel rose 16.6 cents in the last week and stands at $5.584 per gallon.
“Average gasoline prices moved higher in the majority of states over the last week, with fewer than 10 states seeing declines, while diesel surged nearly 17 cents per gallon nationally, leaving it less than 25 cents away from an all-time record high,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Gasoline, while not at all-time records, is at its highest level ever recorded this late in the calendar year, meaning Americans could for the first time ever see a national average price of gasoline above $4 per gallon on Labor Day—eclipsing the previous record of $3.83 per gallon set in 2012. While some oil shipments are apparently getting through the Strait of Hormuz, the dominant force propping up both gasoline and diesel prices is increasingly the growing loss of Russian refinery capacity, as continued Ukrainian attacks knock more facilities offline and constrain the global supply of refined fuels. Until that refining supply picture improves, both gasoline and diesel prices face continued upward pressure.”
OIL MARKET DYNAMICS
Oil prices eased modestly to start the week despite a volatile backdrop, as mixed signals out of Tehran kept markets in check. Iranian President Pezeshkian said last week that Iran “cannot continue with war forever” and described the June MOU as a victory for Iran, while Treasury Secretary Bessent countered by announcing details of what he called an “economic D-Day” sanctions package targeting Iran and countries that continue trading with Tehran, including China. The Strait of Hormuz remains severely restricted, with shipping traffic still in the single digits daily, though the U.S. military reported it has helped tankers transport more than 660 million barrels of crude through the waterway since early May. Adding further pressure on global refined product supplies, Ukraine’s near-daily drone campaign against Russian refineries pushed Russian crude processing to its lowest level since 2002 in July—roughly one-third below seasonal norms—with strikes continuing this month on facilities in Yaroslavl, Nizhnekamsk, and elsewhere deep inside Russia. In early Monday trade, WTI was down $1.55 to $85.51 per barrel, well above last Monday’s $82.08, while Brent fell $1.22 to $93.17 compared to $88.51 a week ago, with both benchmarks posting back-to-back weekly gains of roughly 6% each.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending August 14, 2026, showed U.S. commercial crude oil inventories rose by 4.4 million barrels and are now at the five-year average for this time of year, while the SPR fell 5.3 million barrels to 293.4 million barrels. Gasoline inventories rose by 0.7 million barrels and are about 5% below the five-year seasonal average, while distillate inventories fell by 1.5 million barrels and are about 13% below the five-year seasonal average. Refinery utilization rose 1.0 percentage point to 97.2%, while implied gasoline demand, the EIA’s proxy for retail demand, fell 276,000 bpd to 8.689 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists was $3.99 per gallon, up 10 cents from a week ago, followed by $3.79, $3.69, $3.89, and $3.59, rounding out the top five most common prices.
The median U.S. gas price is $3.89 per gallon, unchanged from last week and about 16 cents lower than the national average.
The top 10% of stations in the country average $5.32 per gallon, while the bottom 10% average $3.43 per gallon.
The states with the lowest average prices: Indiana ($3.51), Texas ($3.59), and South Carolina ($3.62).
The states with the highest average prices: California ($5.57), Hawaii ($5.37), and Washington ($5.20).
Biggest weekly changes: Virginia (+17.9¢), Ohio (-17.3¢), Colorado (+13.6¢), Louisiana (+12.4¢), Florida (-11.1¢).
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $4.99 per gallon, unchanged from last week, followed by $4.89, $4.95, $4.79, and $4.94, rounding out the top five most common prices.
The median U.S. diesel price is $5.49 per gallon, up 14 cents from last week and about 9 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $6.08 per gallon, while the bottom 10% average $5.04 per gallon.
The states with the lowest average diesel prices: Oklahoma ($5.15), Kansas ($5.20), and North Dakota ($5.25).
The states with the highest average diesel prices: California ($7.14), Hawaii ($6.90), and Washington ($6.29).