Alabama Gas Prices Hit Labor Day Record At $3.80, Average Hits $4.15 Nationwide

If you are filling up on the way home from a long holiday weekend this afternoon, prepare for your wallet to take a direct hit.

Americans are paying a record-high amount for a gallon of gasoline on any Labor Day on record at $4.15 nationally. In Alabama, it is $3.80 a gallon, and in West Alabama, $4.04 a gallon in Perry County remains the most expensive. All are Labor Day records, according to Triple-A.

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On Labor Day a year ago, Alabama drivers were paying $2.83 a gallon. Today the high cost of a fill-up is being driven by crude oil near $90 a barrel, volatility in the Strait of Hormuz and reduced refining capacity from Iran-related tensions, missile strikes and threats of expanding the war with the United States.

The good news is Alabama was among the 10 least expensive states for gas despite the sharp increase.

The most expensive gas in the country is in the far western states. The lowest there is $4.39 a gallon in Montana, while the most expensive is $5.86 a gallon in California.

The second most expensive region in the country is most of New England, where gas tops out at $4.32 a gallon in Connecticut.

The Upper Midwest plus New Mexico, Colorado, Maine and Vermont make up the third most affordable area, with Maine's $4.19 being the most expensive in that group.

The East Coast plus Michigan, Iowa and Nebraska account for the third most expensive gasoline averages, with $3.96 in Virginia being the most expensive.

The Mid-South remains the least expensive region, with Missouri's $3.81 the most expensive.

Nationally, gas prices are up 11 cents more than a month ago. Alabama gas prices are up 14 cents more than a month ago.

Gas prices had been predicted to begin dropping after Labor Day, but uncertainty about the Middle East conflict may preempt that forecast.

Of most concern is the continued climb of diesel prices, which impacts the cost of most everything.

Triple-A shows the diesel situation is more severe than that of gasoline. The latest reporting indicates record-high diesel prices driven by geopolitical conflict, refinery disruptions and shrinking fuel inventories will keep prices rising.

Diesel rose from $3.47 to $5.34 a gallon between January and August 2026, a 53.8% increase and the largest January-to-August jump in 32 years. The typical January-to-August change is plus 5.7%.

Diesel prices are rising faster than gasoline prices, which directly affects food and goods prices.