Kerr County gas prices near record highs, far above last year’s rates

Drivers in Kerr County are paying $3.79 a gallon for regular unleaded gasoline, part of a nationwide run-up that has pushed prices to some of the highest levels drivers have seen at this point in the year.

The local price sits above the Texas average of $3.68 a gallon. Texas diesel prices hit an all-time record today, $5.4868 a gallon, the highest average the state has ever recorded, according to AAA data.

Statewide, regular gasoline is up from $2.77 a gallon a year ago — an increase of nearly 33%. Nationally, the trend looks similar. AAA’s national average stood at $4.14 a gallon this week, up from $3.19 a gallon a year ago, a jump of about 30%.

The national average also set a record over Labor Day weekend. According to AAA, $4.14 a gallon made this the most expensive Labor Day at the pump on record, surpassing the previous mark of $3.82 a gallon set in 2012. The national average has never topped $4 on Labor Day before this year.

The main driver, according to AAA, is continued volatility around the Strait of Hormuz, which has kept crude oil prices in the $90-a-barrel range. Gas prices typically ease this time of year as demand drops heading into fall, and demand has, in fact, fallen — from 9.04 million barrels a day to 8.92 million barrels a day last week, according to the U.S. Energy Information Administration (EIA). But with crude oil elevated, that usual seasonal relief hasn’t shown up at the pump.

Federal forecasters expect at least some relief by year’s end. The EIA’s most recent outlook, released Aug. 11, projects the national average for regular gasoline will fall to $3.72 a gallon by the fourth quarter as Middle East oil production sidelined by the conflict gradually comes back online. The agency doesn’t expect a full return to pre-conflict production levels until early 2027.