Gasoline Prices Have Never Been Higher On Labor Day Weekend, And The Cost Of Diesel Has Soared To Absurd Heights

As you enjoy your Labor Day weekend, you may notice that gasoline and diesel are unusually expensive right now. As I will document in this article, gasoline prices have never been this high on Labor Day weekend, and the cost of diesel is now the highest that it has ever been in the entire history of our country. Needless to say, the soaring cost of diesel is really bad news for our economy, because most of our trains, most of our tractors and most of our trucks run on diesel. In addition, approximately 90 percent of the 500,000 school buses in the United States run on diesel. Unfortunately, this is only just the beginning. The war in the Middle East is not going to end any time soon, and neither is the war in Ukraine. In fact, I am convinced that a lot more war is ahead of us.

Normally, gasoline prices are trending downward as the summer comes to an end.

But that hasn’t happened this year.

In fact, the average price of a gallon of gasoline is above four dollars on Labor Day weekend for the very first time in U.S. history…

American motorists are buying $4 gas on Labor Day weekend for the first time in history, a fuel analyst reports.

A gallon of regular unleaded gas cost an average of $4.15 nationwide on Sept. 6, AAA reports.

There have been moments when the price of gasoline has been higher than this, but it has never been this high so late in the calendar year…

“Gasoline, while not at all-time records, is at its highest level ever recorded this late in the calendar year,” said GasBuddy analyst Patrick De Haan, writing in a recent post on X.

We are experiencing the consequences of the historic events that are taking place on the other side of the planet.

The war in the Middle East has greatly reduced the flow of oil out of the Middle East, and Ukraine’s relentless attacks on Russian refineries are having an enormous impact on global energy markets.

As a result, we are forced to pay much more for gasoline…

In a normal year, gas prices follow a seasonal cycle, bottoming out in the depth of winter, when people drive less, and rising steadily through spring and summer, when temperatures are warmer, days are longer and Americans drive more.

But this is not a normal year. The Iran war has driven up global oil prices for months. On top of that, Russia has lost capacity in its refineries, De Haan said, amid ongoing attacks in its war with Ukraine. Together, those forces have pushed U.S. gas prices to their highest levels on record for this time of year.

What is happening to diesel prices is an even bigger story.

On Friday, the average price of a gallon of diesel in the United States set a brand new record high…

The national average price for a gallon of diesel now sits at $5.85, according to the AAA motor club. That figure represents a 55 percent jump since the start of the war with Iran, and the price for a gallon of diesel has now overtaken the previous peak, which occurred four years ago following Russia’s invasion of Ukraine.

Then on Saturday, the average price of a gallon of diesel went even higher…

Diesel fuel prices set a new record high Saturday for a second day in a row.

The national retail average for a gallon of diesel reached $5.8819 Saturday, according to AAA’s daily fuel prices report. That’s up from $5.85 on Friday.

This is not good at all, and the situation is particularly dire on the west coast.

In California, the average price of a gallon of diesel has nearly reached eight dollars…

The most expensive state to buy diesel fuel is California, where a gallon on Saturday averages $7.7770. Prices have not exceeded $7 per gallon in any other state, but six other states have per-gallon averages above $6: Hawaii, Washington, Nevada, Oregon, Pennsylvania and Alaska.

Russia is normally the second largest exporter of diesel fuel in the entire world.

But thanks to months of Ukrainian drone strikes, that is no longer true.

So now global inventories of diesel fuel are starting to get “very, very, very tight”…

“Normally we’d be building up a lot of diesel inventory this time of year, and then we’d draw that back down in October and November. We’re not seeing that inventory build, so folks are looking out and saying ‘wow, inventories are going to be very, very, very tight,’” Miller said.

Miller said the capacity taken offline in Russia could make it a long road to return the average cost of diesel to under $4 a gallon.

“Diesel’s not going below $4 a gallon, oh for a very long time, if possibly ever again,” Miller said.

It would be extremely difficult for me to overstate the seriousness of this crisis.

The crack spread for diesel has skyrocketed to levels that were once believed to be unthinkable…

Diesel is used to produce the food that you eat every single day.

This year, much higher diesel prices are hitting our farmers like a sledgehammer…

Dale Hemminger runs a dairy and cabbage farm in Seneca Castle, N.Y. “Diesel is our fuel,” he says. “We have to run tractors and harvesters and trucks, and they almost exclusively run on diesel. So, diesel and the price of diesel is a major factor.”

So far this year, Hemminger says, fuel has cost him close to $45,000 for a tank of 10,000 gallons. Last year, it was around $25,000 for a tank.

This is one of the reasons why many are forecasting that you will be paying significantly more for food in 2027.

Of course the cost of diesel is going to affect prices in nearly every other sector of our economy as well…

Soaring diesel costs are raising expenses for trucking, construction, agriculture and other industries that rely on heavy-duty vehicles and machinery.

High diesel prices can stoke inflation by raising the cost of transporting goods across the U.S., thereby pushing up consumer prices.

“The everyday consumer will see higher diesel prices in the consumer goods they purchase,” said Susan Bell, senior vice president of downstream research at Rystad Energy. “Think of the groceries that get shipped around the nation, and fruits and vegetables that come from California and move by truck or rail. It’s inflationary.”

Many pundits are hoping that the war in the Middle East and the war in Ukraine will both end within the next 12 months.

Wouldn’t that be wonderful?

But do you think that will actually happen?

I certainly don’t.

In fact, I believe that the military conflicts that we are witnessing will only intensify as we roll into 2027.

So don’t get too accustomed to the painfully high energy prices that we are experiencing now, because I believe that they will soon go even higher.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com.  He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

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Michael Snyder is the publisher of The Economic Collapse Blog, The American Dream Blog and The Truth. You can follow him on Twitter right here.