Diesel Sticker Shock: What Central Texas Drivers Are Paying at the Pump This Labor Day
If you’re hauling a boat to Lake Travis this Labor Day weekend, or you’re a trucker just trying to get a load to Houston, you’ve probably already noticed: diesel is expensive right now. Not “a little higher than last year” expensive — closer to record-territory expensive.
The headline number
Heading into the holiday weekend, the U.S. average price for diesel sits at $5.78 a gallon, according to AAA’s daily tracking — up nearly 17 cents in the last week alone and just 3 cents shy of the all-time national record of $5.816, set back in June 2022. Compared to a year ago, diesel is running $2.08 higher per gallon, an increase of more than 56%.
That’s a strikingly different story from regular gasoline.
AAA says this Labor Day is on pace to be the most expensive on record for gasoline too, with the national average around $4.14 — but Texas is actually one of the cheapest states in the country to fill up a car, at roughly $3.68 a gallon.
Diesel is where Texas motorists and truckers are feeling real pain.
Texas and the Austin area
Diesel prices don’t get the same city-by-city detail as gasoline, but the regional data tells a clear story.
The U.S. Energy Information Administration, which breaks Texas out separately as one of only a handful of states with its own diesel series, put the Gulf Coast region (which includes Texas) at $5.36 a gallon for the week ending August 31 — up nearly $2 a gallon from a year earlier.
Zoom into Central Texas and the trend lines up.
AAA’s Austin-San Marcos metro data has tracked diesel from around $3.00 a gallon in January to $4.56 in mid-March, then a fresh regional record above $5 by early April.
Local truckers noticed.
One longtime Austin-area truck driver told KVUE-TV it was the highest he’d ever seen, and a 23-year veteran of the trucking business who trains new drivers said the same. Industry operators are now passing along fuel surcharges that ripple through into the cost of everything trucks deliver — including groceries.
Why diesel, and why now
Gasoline and diesel usually move together, but this year they’ve decoupled. The reason traces back to the Middle East.
Escalating conflict involving Iran has repeatedly threatened tanker traffic through the Strait of Hormuz, a chokepoint that a disproportionate share of the world’s diesel and jet fuel — as opposed to gasoline — passes through on its way to global markets. Each flare-up has sent diesel futures spiking harder and faster than crude oil itself, and refiners have been able to charge much fatter margins on diesel as a result.
AAA’s Labor Day outlook, released September 3, points to the same culprit: continued volatility tied to the Strait of Hormuz has kept crude oil in the $90-a-barrel range, an unusual level for what’s typically the slow season for fuel demand.
GasBuddy’s own Labor Day forecast calls for the most expensive holiday weekend for gasoline on record and warns that diesel “could also reach record highs in the coming weeks.”
How this Labor Day stacks up
| Diesel (Nat’l Avg.) | Diesel (TX / Gulf Coast) | Gasoline (Nat’l Avg.) | Gasoline (TX Avg.) | |
|---|---|---|---|---|
| Today | $5.78 | $5.36 | $4.14 | $3.68 |
| A week ago | $5.62 | — | $4.10 | — |
| A month ago | $5.36 | — | $4.09 | — |
| A year ago | $3.70 | — | $3.19 | — |
| All-time record | $5.82 (6/19/22) | $5.37 (set 4/9/26) | $5.02 (6/14/22) | — |
Diesel figures: AAA daily average and EIA weekly regional survey. Gasoline figures: AAA daily average, as of September 3, 2026.
The 2026 diesel rollercoaster
Diesel prices haven’t just risen steadily this year — they’ve whipsawed. Each new flashpoint in the Iran conflict has produced a spike, followed by a partial retreat as tensions cooled, only for the next disruption to push prices right back up. Texas, plugged directly into Gulf Coast refining, has tracked those swings closely rather than being insulated from them.
Gasoline vs. diesel: an unusual gap
Normally the spread between gasoline and diesel is modest. Right now it’s roughly $1.60–$2.10 a gallon nationally and in Texas — a gap driven almost entirely by diesel’s outsized exposure to Middle East shipping disruptions rather than anything unique to the domestic gasoline market.
What it means for Central Texas
- Truckers and small carriers are absorbing costs directly or passing them on through fuel surcharges, which flow into the price of anything that arrives by truck — a meaningful share of what shows up on Austin grocery shelves.
- Farmers and ag operators across Central Texas, who rely on diesel for tractors and irrigation equipment, are contending with one of the least favorable fuel environments in years just as fall fieldwork ramps up.
- RV and boat owners heading out for the holiday weekend on diesel-powered rigs will pay considerably more per tank than they did a year ago, even though gasoline-only road-trippers are getting relative bargains by Texas standards.
Any relief in sight?
There are a couple of reasons for cautious optimism after the holiday.
Gasoline demand typically eases once summer ends, and much of the country shifts to cheaper winter-blend gasoline around September 15, which tends to nudge pump prices down.
GasBuddy’s Patrick De Haan has said relief “may lie ahead if tensions ease” in the Middle East — but with crude still trading near $90 a barrel and shipping through the Strait of Hormuz still constrained, few analysts are willing to predict a quick return to pre-2026 diesel prices.
For now, Central Texas drivers — especially anyone behind the wheel of a diesel rig — should expect to keep paying a premium well past the long weekend.
Sources:
- AAA Gas Prices – National average gas prices
- AAA: “Labor Day On Track to Set Record at the Pump” (Sept. 3, 2026)
- U.S. Energy Information Administration – Gasoline and Diesel Fuel Update
- KVUE Austin – “Diesel prices averaging over $5 a gallon in Texas”
- ABC 33/40 – “GasBuddy forecasts record Labor Day gas prices”
- Stacker/AAA metro fuel price data for Austin-San Marcos and Texas, compiled via AAA daily averages (March–May 2026)
- S&P Global Commodity Insights – “Diesel once again on the front line of supply disruptions and price volatility” (March 2026)
Police are searching for a suspect after they say a teenager was shot and injured early this morning near South I-35 Frontage Road in South Austin.
APD’s Auto Theft Unit is requesting assistance in identifying a suspect involved in an auto theft that occurred last week in the 2300 block of Carson Ridge.
Pflugerville authorities are reviewing a viral online video depicting the alleged abuse of a local dog, though preliminary veterinary exams have revealed no physical injuries.
A joint anti-DWI crackdown by the Texas Department of Public Safety and the Austin Police Department netted 11 drunk driving arrests and recovered a stolen vehicle over a three-day enforcement blitz last weekend.
A former Manor ISD elementary teacher was arrested on a charge of injury to a child, according to the district and an arrest affidavit obtained by KXAN-TV.
Following a push from state leaders and mounting privacy concerns, neighboring Central Texas communities are stepping back from automated license plate reader technology. Both Elgin and Manor are hitting pause on their Flock Safety camera operations, joining a growing list of Texas municipalities rethinking their reliance on the AI-powered surveillance network.
The following is a Sept. 2 letter from Elgin Police Chief Chris Noble to Mayor Theresa McShan and Acting City Manager Beau Perry on the FLOCK Safety ALPR system:
Beginning today, I have instructed my staff that the Elgin Police Department will pause its use of the FLOCK Safety ALPR system currently in place within the City of Elgin. This pause will remain in place until I receive further instruction from our elected officials.
This is a very difficult decision as the FLOCK system has been instrumental in our ability to investigate and solve many violent crimes, and scores of property crimes. I am incredibly proud of EPD’s transparent and strict oversight of the system through routine “deep dive” audits, analysis of usage, limited access to only a few individuals, strict policies on its use and supervisory inspections. Nevertheless, I completely understand the public’s perceptions and resulting mistrust of how APLR data is used, stored and shared. Regrettably, the actions of a few people in law enforcement agencies across the country have stained this investigative tool; irreparably, I fear.
Elgin’s FLOCK Safety systems are two-fold:
- Thirteen cameras are funded through the city’s general fund.
- Twelve cameras and a mobile trailer are grant-funded through the State of Texas Motor Vehicle Crime Prevention Authority (MVCPA)
This morning I learned Texas Gov. Greg Abbott has ordered state agencies to pause funding for FLOCK Safety cameras. This will directly affect our cameras that are grant-funded. As such, I believe this is a good time to follow the governor’s lead and pause our use of FLOCK Safety until our elected officials determine if resumption, or cancellation of the subscription(s) is in the best interests of the Elgin community.
Discussions with FLOCK Safety will be had to determine the best course of action while we pause, and/or cancel the program. I will advise soonest.
Chris Noble
Chief of Police
Effective today, September 3 2026, the Manor Police Department has decided to end our relationship with Flock Safety. Although we see benefits in the use of License Plate Readers (LPRs) to solve crime, we value the trust of our community more.
Manor joins nearby cities like Pflugerville and Lago Vista in halting or ending its contract as elected leaders weigh resident concerns against public safety toolkits across the region.
Residents and city leaders in Leander are actively debating the future of their contract with Flock Safety.
The moves follow a directive from Texas Governor Greg Abbott ordering state agencies to freeze grant funding for the cameras amid public scrutiny over civil liberties and potential misuse.
Austin spent $719,361 on homeless encampment management between May 11 and June 5, averaging $1,577 per site visit across 456 site visits, city staff told council members Wednesday. Outreach teams visited some sites multiple times, and most of the costs came from staff salaries and contractor payments. (Austin American-Statesman)
Austin’s Parks and Recreation Department plans to stop running some adult sports leagues, and find an outside company to run them. (Austin Current)
Tesla took its biggest leap yet into fully autonomous transportation on Thursday, hosting an exclusive launch event in Austin to officially debut its purpose-built Cybercab robotaxi.
The gold-colored, two-seater vehicle features futuristic butterfly doors and a radical interior design stripped entirely of traditional human controls—meaning no steering wheel, no gas or brake pedals, and no side mirrors.
Moving beyond controlled testing, Tesla immediately began offering limited Cybercab rides in designated zones across Austin via its Robotaxi app, marking the real-world deployment of a driverless vehicle that relies solely on cameras and Tesla’s full self-driving AI, without a physical safety net for passengers to take over.
On a “From the Vault” edition of “Inside the Investigation,” KXAN Director of Investigations & Innovation Josh Hinkle and Senior Investigative Reporter David Barer revisit KXAN’s “A Fatal Fall” investigation into a teen’s mysterious scooter death in Austin.
(Episode from September 3, 2026)
THIS WEEKEND IN THE ATX
Texas A&M Forest Service officials continue to monitor the massive Ross Fire in Palo Pinto County, which remains at around 90,000 acres with 38% containment.
While parts of the region are expected to get some rain and slightly cooler temperatures in the next few days due to Edouard, it remains to be seen how the changing weather would affect the fire. (Texas Tribune)
WEATHER
THURSDAY’S HIGH / LOW TEMPERATURES
AUSTIN-BERSGTROM INTERNATIONAL AIRPORT
CAMP MABRY
5-DAY FORECAST / AUSTIN, TEXAS
Tropical Rainstorm Edouard will continue to bring downpours and thunderstorms to parts of northeastern Texas into the end of the week. Edouard has only a slight chance of regenerating, but AccuWeather meteorologists are also keeping an eye on the eastern Gulf, where showers and thunderstorms from Dolly linger. (AccuWeather)
Republican strategist Karl Rove is sounding the alarm on Texas’ U.S. Senate race, warning that “time is running out” for GOP nominee Ken Paxton to close a widening gap against Democratic state Rep. James Talarico.
Speaking Wednesday on Fox News Radio’s “The Brian Kilmeade Show,” Rove said panic is beginning to creep in over Paxton’s lackluster campaign, as the attorney general struggles against a well-funded Talarico who is being boosted by heavy advertising spending.
Recent polling shows Talarico leading Paxton, with 47 percent of respondents backing the Democrat compared to 40 percent for the Republican.
Rove’s warning came as Paxton’s own GOP primary rival, Sen. John Cornyn, told the Texas Tribune he has no plans to help the campaign, calling Paxton “lazy” and unable to make a compelling case for his own election.
Gov. Greg Abbott spoke in Bee County Thursday evening.
A U.S. Immigration and Customs Enforcement officer who was arrested in Texas earlier this year has been federally charged with lying to investigators about a January shooting in Minneapolis, according to The Associated Press. (Texas Standard)
The New Braunfels Police Department is currently searching for a yellow Chevy Trailblazer after two occupants reportedly robbed and assaulted an elderly woman.
What began with a traffic stop last week in Caldwell County for an expired registration resulted in the arrest of a wanted individual.
A Luling man is facing a charge of aggravated assault with a deadly weapon following a recent SWAT situation.
From the Texas Department of Safety:
A proposed 665-Acre Project Mustang Data Center has withdrawn its annexation and zoning application with the City of Taylor but is still pursuing development of the site and remains in discussions with the city.
Texas A&M is cutting hundreds of classes from its general education requirement lists, including courses like LGBTQ Literature and Race and Ethnicity.
SPORTS
SATURDAY, SEPTEMBER 5, 2026
HIGH SCHOOL FOOTBALL: high-voltage stadium lights set the stage across Central Texas on Thursday night.
| Matchup | Final Score |
| Round Rock Westwood vs. Austin High | 24 – 20 |
| Cedar Park vs. San Antonio Clark | 68 – 7 |
| Austin McCallum vs. Austin Travis | 48 – 0 |
| Eastside Early College vs. Jefferson | Game played Thursday evening |
Note: The remaining Week 2 Central Texas matchups kick off tonight across the metro area.
FRIDAY NIGHT FOOTBALL
- Hill Country Christian (Austin) vs. St. Michael’s — 7:00 PM
- Austin High vs. Round Rock Westwood — 7:00 PM
- Austin Akins vs. Austin LASA — 7:30 PM
- Austin Bowie vs. Vista Ridge — 7:30 PM
- Buda Hays Consolidated vs. Seguin — 7:30 PM
- Buda Johnson vs. San Antonio Pieper — 7:30 PM
- Del Valle vs. Killeen Shoemaker — 7:30 PM
- Dripping Springs vs. San Antonio Harlan — 7:30 PM
MLB: Both Texas clubs picked up victory night as September baseball heats up.
The Texas Rangers shut out the Tampa Bay Rays 6–0 at home behind seven scoreless innings from Cal Quantrill.
They stay put at Globe Life Field in Arlington tonight to continue their series against Tampa Bay (7:05 PM CT).
Meanwhile, the Houston Astros powered past the Chicago White Sox 6–2, sparked by a Jose Altuve home run and a four-run third inning.
They remain in Houston tonight to open a new home series against the Arizona Diamondbacks at Daikin Park (7:10 PM CT).
AL WEST STANDINGS
| Team | Record | Win % | Games Back |
|---|---|---|---|
| Houston Astros | 71–69 | .507 | — |
| Texas Rangers | 69–71 | .493 | 2.0 |
| Seattle Mariners | 66–74 | .471 | 5.0 |
| Oakland Athletics | 54–86 | .386 | 17.0 |
| Los Angeles Angels | 53–87 | .379 | 18.0 |
In September 2011, wildfire tore through Bastrop County and became the most destructive fire in Texas history. More than 1,600 homes were lost, over 32,000 acres of the Lost Pines forest burned, and a community that calls itself “the most historic small town in Texas” had to figure out how to rebuild almost overnight.
Less than a year later, The Daytripper went back.
This special episode closes out the season with a look at how Bastrop endured the fire and why it might be the best time yet to visit this town. He talks with locals who lived through it, walk through the recovering Lost Pines, and see firsthand what resilience actually looks like when an entire community refuses to give up on the place they call home.
This isn’t the typical daytrip episode. It’s a tribute to a town that got knocked down hard and got back up anyway. Come see Bastrop’s comeback for yourself.
