Gas prices set another record this Labor Day weekend.

GasBuddy.com reports, the national average for a gallon of gas is $3.80, the highest on record for the holiday weekend. The previous record high was $3.68 a gallon, set back in 2008.

Gas prices in El Paso have been steadily increasing over the past couple of weeks, right now lingering about $3.42.

Dr. Tom Fullerton, an economics professor at University of Texas at El Paso, said typically Labor Day weekend is the peak of gas prices and eventually leads to a drop off, but said that's not the case this year.

Fullerton is predicting gas prices will be knocking at the door of $4 a gallon in the coming weeks. That has El Pasoans adjusting their budgets.

Pierre Mahieu is a personal trainer who drives from one side of town to the other every day. He said there's no way around it so he has already cut out eating out and shopping, and now rides a bike to school.

Fullerton said the difference is attributed to major cuts in supply. First, he said Hurricane Isaac forced oil refineries on the Gulf Coast to close, and back on August 25th a major fire broke out at the largest refinery in South America. Fullerton said most of that supply is exported.

"Gasoline prices have gone up rapidly over the course of the last three weeks and they probably haven't peaked yet," said Fullerton.

Mahieu said now he'll just compare process before pulling up to the pump.

"Around Cielo Vista Mall the prices are fairly low, $3.39, $3.35 on the far West Side or far East Side they're almost $3.60, so it's a big difference," said Mahieu.

Some good news for El Paso drivers is that a year ago the average was higher, at about $3.48 a gallon. Right now, El Pasoans are also paying less than the state average of 3.64.