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US Labor Day Gasoline Prices Set for Record as Crude Oil Costs Surge, AAA Says

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US gasoline prices are on track to set a record for the Labor Day holiday weekend as elevated crude oil prices push up costs at the pump despite a seasonal decline in fuel demand, AAA said on Thursday.

The national average price for regular gasoline stood at $4.1436 a gallon, up from $4.0997 a week ago and $4.0946 a month earlier. AAA said that the price is higher than the $3.1903 average recorded a year ago.

The national average has never exceeded $4 per gallon on Labor Day, with the previous holiday record of $3.82 set on Sept. 3, 2012.

"Continued volatility in the Strait of Hormuz has pushed crude oil prices in the $90 per barrel range," AAA said, adding that gasoline prices would normally decline at this point in the year as demand falls after the summer driving season.

On Wednesday, WTI settled at $91.01 per barrel, up $0.79 on the day. US crude inventories fell by 4.5 million barrels in the latest week, though stocks at 424.5 million barrels remained 1% above the five-year average for this time of year.

US gasoline demand fell to 8.92 million barrels per day last week from 9.04 million b/d, while total domestic gasoline supply declined to 205.7 million barrels from 206.8 million barrels.

Gasoline production was unchanged at an average of 9.8 million b/d. AAA said that California had the highest average gasoline price among US states at $5.78 per gallon, followed by Washington at $5.47 and Hawaii at $5.41.

Indiana had the lowest average at $3.44 per gallon, followed by Texas at $3.69 and Oklahoma and Mississippi at $3.71 each.

Meanwhile, the national average price for electricity at public electric vehicle charging stations was unchanged at 42 cents per kilowatt-hour.

The figures come as millions of Americans prepare to travel over the Labor Day weekend, traditionally marking the end of the peak summer driving season.

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US Labor Day Gasoline Prices Set for Record as Crude Oil Costs Surge, AAA Says | FINWIRES