NEW MEXICO (KRQE) – Gas prices are soaring across the country and in New Mexico. While drivers hate it, it’s great for New Mexico’s coffers. The national average is $4.06 and in New Mexico, the average price for a gallon is $3.89. While drivers hate it, it’s great for New Mexico’s coffers.

Reilly White, associated professor of Anderson School of Management says the rise is partly because of the Russian invasion of Ukraine. Prices are expected to keep increasing and there is usually a spike in prices during the summer months.

This could be good news for the state. Oil and gas is the main source of income for New Mexico. “In any given year it could be 25 to 40% of our revenue budget,” said White. “Every $1 change in New Mexico’s average price of oil represents somewhere around $23 million impact to the state’s general fund.”

It’s too soon to tell how much more revenue the state could see because prices are expected to keep rising. Some parts of the state are already seeing $4 gas. The Hidalgo County average is $4.29.