OPINION: Cheap gas isn't really cheap, and it hurts New Mexico's future

Gas prices can feel like a blessing in a car-dependent state like New Mexico. Lower prices at the pump reduce commuting costs and ease financial pressure on families. Yet, behind the savings lie hidden costs — costs we pay through worsening health, environmental disasters and taxpayer subsidies that support fossil fuel companies.

Air pollution is a serious concern across New Mexico, especially near oil and gas development. The state is the second-largest oil producer in the U.S., with the Permian Basin in southeastern New Mexico among the most active drilling regions in the world.

That production brings ozone, methane and fine particulate pollution. According to the American Lung Association, counties like Eddy and Lea consistently receive failing grades for ozone pollution — a major cause of asthma, heart disease and premature death.

“Cheap gas at the pump comes at a steep price in our emergency rooms,” said State Sen. Liz Stefanics, D-Cerrillos. “It’s our children, elders and vulnerable communities who suffer the health effects of fossil fuel pollution.”

The New Mexico Department of Health links high ozone levels with increased asthma rates, particularly among children in rural and tribal communities. Yet, these health care costs are not paid by oil companies — they’re paid by families, hospitals and taxpayers.

New Mexico is no stranger to the effects of climate change. In 2022, the Hermit’s Peak/Calf Canyon Fire became the largest wildfire in state history, burning over 340,000 acres.

Prolonged drought, also intensified by warming temperatures, threatens the state’s already fragile water supply. Farmers and ranchers across the Rio Grande Valley are facing reduced irrigation flows and shrinking growing seasons.

These disasters are not isolated incidents — they are fueled by rising CO2 emissions. And they’re costly. Nationally, the Federal Emergency Management Disaster Relief Fund now spends billions per year responding to climate-related emergencies — a cost largely paid by taxpayers.

Despite these impacts, fossil fuel companies continue to receive generous government support. The U.S. provides $15 billion to $20 billion annually in fossil fuel subsidies, through tax breaks, loans and grants. New Mexico adds to that total with state-level incentives, tax credits and royalty reductions for oil and gas companies.

Meanwhile, about one-third of New Mexico’s state budget comes from oil and gas revenues. This dependency makes the state vulnerable to price crashes — putting funding for education, health care and public safety at risk.

“We’ve got to diversify our revenue sources and stop mortgaging our future to the boom-and-bust cycles of oil and gas,” said Rep. Kristina Ortez, D-Taos. “Subsidizing fossil fuels today just makes tomorrow’s problems worse.”

A growing policy alternative is the carbon fee and dividend. This approach puts a price on fossil fuel emissions, requiring companies to pay for the pollution they create. The revenue is returned directly to households, protecting low- and middle-income families from rising energy costs.

Carbon pricing is a market-based solution that aligns economic incentives with environmental responsibility — encouraging innovation and cleaner energy without growing government.

For New Mexico, cheap gas is not really cheap. The hidden costs — in health, disaster response and subsidies — fall on everyday people, while fossil fuel companies keep the profits.