New Mexico State Capitol by F McGady is licensed under Creative Commons Attribution 4.0 International license.

New Mexico drivers already paying significantly more at the pump could soon get another bill from Santa Fe. 

State Sen. Bobby Gonzales (D-6) is proposing raising New Mexico’s gasoline excise tax by three cents per gallon, from 17 cents to 20 cents, a nearly 18 percent tax hike. The proposal would also raise the tax on diesel fuel by four cents per gallon. 

The timing could hardly be worse for New Mexico motorists. 

Regular gasoline currently averages about $4.47 per gallon statewide, according to AAA, compared with $3.08 one year ago. That means New Mexico drivers are paying roughly 45 percent more for gasoline than they were last September. 

Diesel prices are even worse, averaging $6.34 per gallon and reaching a record high in the state. Higher diesel costs also affect businesses that rely on trucks to transport food, construction materials and other goods, potentially passing those costs along to consumers. 

Yet Gonzales argues motorists should pay more to fund New Mexico’s roads. 

“We haven’t raised our tax in over 30 years,” Gonzales told KOB. 

Gonzales said the additional revenue would bolster the state road fund and help pay for pothole repairs, road striping, guardrails and other infrastructure needs. 

But New Mexico has already approved significant new transportation funding. 

Earlier this year, lawmakers approved a historic $1.5 billion transportation bonding package for road and bridge projects across the state. The package was designed to generate at least $70 million annually in new recurring revenue without raising fuel taxes. 

Gonzales himself sponsored the legislation, describing it to establish a stable source of transportation funding. 

The state sold its first $220 million in transportation bonds in June, making hundreds of millions of dollars available for projects across New Mexico. 

State Sen. Bill Sharer (R-1) has also questioned why New Mexico should reach further into motorists’ wallets when the state already receives significant revenue from its oil and gas industry. 

“There is money that’s already coming in,” Sharer said. “We don’t need to raise taxes.” 

New Mexico’s oil and gas industry provides a substantial share of the money used to finance the state government. State budget projections show oil and natural gas revenues accounting for roughly one-third of recurring general fund revenues. 

A three-cent increase may sound small, but raising the gasoline excise tax from 17 cents to 20 cents amounts to a nearly 18 percent tax increase. For workers with long commutes, families with multiple vehicles and rural residents with few alternatives to driving, the tax would become another recurring expense every time they fill their tanks. 

New Mexico motorists are already paying roughly 45 percent more for gasoline than they were a year ago. Meanwhile, lawmakers have authorized $1.5 billion in transportation bonding, and the state continues to benefit from substantial oil and gas revenues. 

Raising the gas tax now would pile another cost onto New Mexicans already paying more at the pump.