New Hampshire families are facing higher gas prices as the summer travel season gets underway.

Since the war in Iran began in late February, prices across New England are up nearly 60%, to $4.45 per gallon, according to AAA. That is the highest level since 2022, following Russia’s invasion of Ukraine.

Ben Reynolds, a senior policy analyst with the New Hampshire Fiscal Policy Institute, said residents were already struggling with the high cost of health care, child care and housing.

“With the higher fuel costs, that takes more of a person's budget to where they're going to have to make tradeoffs for other needs,” Reynolds said.

He said recent data show a four-person family earning the state’s median household income falls $2,000 short of covering the cost of owning a home and paying for basic needs.

Rural families have been especially challenged by rising gas prices, Reynolds said, because of limited public transportation options.

State budget analysts predict high gas prices will eventually cut into Department of Transportation revenue. The state’s Motor Fuels Tax, a primary funding source for road, highway and bridge repairs, is tied to the number of gallons purchased.

Reynolds said changes in driving behavior because of rising prices could lead to reduced transportation investments across the state.

“We could also potentially see just higher construction costs this summer," he said, "which could eat into more of the DOT's budget than they had anticipated.”

New Hampshire drivers hoping to avoid high gas prices by going electric may not get much relief. EV charging rates are also increasing, with the average kilowatt-hour of electricity at a public charging station now costing 42 cents.

The Trump administration has floated the idea of temporarily eliminating the federal gas tax to provide drivers with some relief, but any change would require congressional approval.

Source: Public News Service