San Diego County gas prices set Labor Day record, thanks to Iran War, refinery issues – NBC 7 San Diego
The average price of a gallon of self-serve regular gasoline in San Diego County rose to $5.95, its highest amount ever on Labor Day.
The previous Labor Day record was $5.38 set in 2023.
The average price has risen 19 of the past 20 days, increasing 26.9 cents, including six-tenths of a cent Sunday, according to figures from the AAA and Oil Price Information Service. It is the highest it’s been since June 5, and is $1.24 more than a year ago.
It has increased $1.265 since the start of the joint U.S., Israel war on Iran in February, which sent oil prices higher and drastically accelerated increases at the gas pump.
Crude oil traffic through the key Strait of Hormuz has plunged, and Iran has refused to reopen the waterway, according to the Associated Press.
National average gas price also breaks record
The national average price increased to $4.15, its highest ever on Labor Day, breaking the old record of $3.82 set in 2012. It has increased $1.168 since the attack on Iran.
For diesel, its national average reached a record of $5.85 a gallon on Friday.
Trucks and other freight delivery systems use a lot of diesel, and the increased transportation cost is being passed on to consumers, whether at the grocery store or through package delivery services.
Gas prices typically drop as the summer driving season ends and refineries turn to making a cheaper winter blend.
There are other factors this year aside from the conflict in the Middle East that make future prices unpredictable, according to Tom Seng, a professor of energy finance at Texas Christian University.
U.S. refineries are working at 98% capacity, many in the unusually harsh Texas heat. If there are problems there or a hurricane knocks some systems offline, prices will struggle to drop.
Ukrainian drone attacks on Russian refineries are also impacting diesel supplies. Chinese refiners are seeing declining outputs as well, said Matthew Metzgar, a clinical professor of economics at UNC Charlotte.
“There’s just less gasoline coming out of those refineries,” Metzgar said.
Energy Secretary Chris acknowledged that prices are higher now than Labor Day 2025.
“Yes, they’re higher today, but we’re doing everything we can to push them down,” Wright said Sunday on ABC’s “This Week.”
Using price apps can help save a little money, especially on long trips where gas by the interstate could be 10 to 15 cents per gallon more expensive than at stations a short drive down the road, Metzgar said.
The Associated Press contributed to this report.