Should New Hampshire, Federal Government Suspend Gas Taxes?

CONCORD, NH — Should gas taxes be dropped or lowered in the wake of huge spikes in prices during the past 18 months?

That is the question some politicians and the public are asking after prices reached historic levels in New Hampshire.

The price of gasoline, on average in the state, according to AAA, is $4.23 per gallon. Prices in Concord were as high as $4.39 on Wednesday while at a gas station in Bedford, near Route 101, had a price of $4.59 per gallon for regular.

State gas taxes are 23.83 cents per gallon on both gasoline and diesel fuel. The federal government, according to the American Petroleum Institute, charges 18.4 cents in taxes for gasoline.

About a month ago, when gas was less than $3.50 per gallon in the region, U.S. Sen. Maggie Hassan, along with colleagues from around the country, suggested the federal gas tax be suspended for the rest of the year, to give the consumer a break.

“We need to continue to think creatively about how we can find new ways to bring down costs,” Hassan said, “and this bill would do exactly that, making a tangible difference for workers and families.”

The change was an about-face from past comments about gas taxes.

Gas prices in Bedford on March 9. Credit: Jeffrey Hastings/Frame of Mind Photography

Gov. Chris Sununu said the issue was a major one and he and his administration were eyeing options.

“We are exploring all avenues to lower the burden of rising costs on New Hampshire families as a result of the disastrous policies out of Washington,” he said, “including engaging with the legislature on temporarily suspending the rooms and meals tax or the state gas tax — all options must be on the table.”

In Massachusetts, some state officials would like its 24 cents per gallon gas tax dropped while others want the spike in prices investigated.

Some have placed the blame on the current spike on Russia’s invasion of Ukraine — but prices steadily climbed months before.

Gas prices were around $2 per gallon in October and November 2020 in New Hampshire (the day after the election, gas was purchased at $1.77 per gallon at the Speedway in Concord). In about a year, the price nearly doubled. On Nov. 14, 2021, gasoline in Concord was purchased for $3.37 per gallon — an increase of $1.60 per gallon.

It is true gas prices have quickly spiked in recent weeks due to volatility in the marketplace in the wake of the invasion. On Feb. 26, two days after the invasion, gas prices were around $3.49 in Concord. A week later, they were more than $4 at most gas stations — an increase of between 54 and 80 cents. After President Joe Biden issued a Russian oil ban, prices rose again by 10 to 15 cents in 24 hours in Concord. AAA said the average price increased by more than 8 cents during the past 24 hours in New Hampshire.

What do you think? Should gas taxes be reduced to give consumers a break? Leave a note in the comment section.

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