Petroleum energy prices are rising globally, and New Hampshire is not immune to this increase. Sharp upward pressures on prices, particularly for crude oil, pose a new challenge to household budgets in the Granite State.
The most visible change in energy prices during the past month has been in the cost of gasoline and diesel fuel. According to the U.S. Energy Information Administration (EIA), the retail price of a gallon of regular gasoline in New England increased $0.88 (31%) to $3.727 between February 23 and March 23. Private-sector trackers suggest prices have continued to climb since then.
This price spike can have varying impacts across households. The average registered vehicle in the U.S. traveled 11,071 miles in 2024. With an efficiency of 22 miles per gallon (MPG), which could reflect an older or larger vehicle, a price increase of $0.88 increases fuel costs by $440 per year, while a 38 MPG car would result in $255 per year in added cost. For households with two drivers, these values could be doubled, and can increase further when more miles are driven than that national average, such as for residents of rural areas.
Retail diesel prices for highway vehicles in New England increased $1.56 (37%) during the same period. While fewer people use diesel than gasoline directly, diesel prices are a key variable for the costs of shipping goods, including food, by truck.
The EIA estimates 51% of gasoline prices and 41% of diesel prices are driven by crude oil.
Beyond transportation costs, the majority of homes that use heating oil are in the northeastern United States, making the region especially vulnerable to disruptions in oil supply. The price of a gallon of No. 2 residential heating oil increased $1.48 (38%) between February 23 and March 23, which effectively increased the price of filling a 250-gallon tank from empty to full by about $370.
There will likely be upward pressure on natural gas prices, but New England prices, which typically spike in the summer, have remained relatively stable during most of March.
Granite State households already faced rising prices. Comparing prices in February 2025 to February 2026, overall inflation in the northeastern U.S. was 2.7%, but the price of food was 3.7% higher, and the cost of housing was up 3.9%. Household energy costs were 6% higher. The last month’s price increases make essentials more difficult to cover for Granite State households and threaten to cause more price hikes in the future.
Phil Sletten is research director for the NH Fiscal Policy Institute. The NHFPI Policy Memo is a partnership of the NH Fiscal Policy Institute and NH Business Review.
Petroleum energy prices are rising globally, and New Hampshire is not immune to this increase. Sharp upward pressures on prices, particularly for crude oil, pose a new challenge to household budgets in the Granite State.
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