The bad news for consumers: Oil prices are rising.

The good news for the state of New Mexico: Oil prices are rising.

The cost of filling up gas tanks in Santa Fe remains below the national average but continues a slow, steady climb, mirroring the rising price of crude oil.

The national average for regular gasoline on Friday was $3.08, and the average for diesel was $3.33, according to the AAA's Daily Fuel Gauge Report. Santa Fe's average was $2.91, a little above the state average, according to the website New Mexico Gas Prices. Prices for regular across the state ranged from $2.71 a gallon at a Smith's in Albuquerque to $3.29 at a Chevron station in Deming.

Industry experts expect the upward trend in gas prices to continue at least into summer. While that's bad news for consumers, it is good news for a cash-strapped New Mexico government. Higher prices on oil and natural gas mean more revenue for the state, which has a supply of both resources.

Crude oil prices dipped in August and have taken an upward track ever since. The average world price for a barrel hovered around $90 this week — up from $82 a barrel in November.

Every one-dollar cost increase for a barrel of crude brings an estimated $4 million to New Mexico's general fund and almost $10 million in other revenue to the state and local governments, according to economists with the state Legislative Finance Committee. Oil and gas revenues represent about 15 percent of the general fund.

Economist Tom Clifford said the state should garner about $316 million in oil revenues for the general fund in fiscal year 2011. That is a projected increase of almost $30 million over the previous year's revenues.

Still, overall revenues from oil and gas have declined because of a drop in natural gas prices. LFC is projecting about $464 million from natural gas revenues, a considerable drop from last fiscal year.

"Gas is about twice as important to revenues as oil," Clifford said.

Tom Kloza, chief oil analyst for the 25-year-old Oil Price Information Service, doesn't think retail gasoline prices will hit $5 per gallon as some people have predicted. Still, he advises in a December blog post to steer clear of gas-guzzling SUVs.

"My view of 2011 suggests that we are looking at the second fuel price apocalypse of the 21st century, commencing during a time line that will begin with Spring training and end when the Cubs are written off as a baseball non-contender," Kloza wrote.

Friday, Kloza was still standing by his prediction. "I think we'll see retail prices nationwide peak in the $3.25-$3.75 gallon neighborhood and that peak may come in April or May," Kloza said in an e-mail. "I also think we may ... spend a bit of time at $100 (per barrel) or slightly more for crude in 2011."

Kloza doesn't think oil prices will run wild as they did in 2008. "Consumers have a very fragile psyche, and they react with unusual hostility when fuel and food prices go up toward 21st century highs."

Another economic slowdown, increased OPEC oil production, international debt problems and terrorist activity could all push fuel prices down again, Kloza said.

Contact Staci Matlock at 986-3055 or smatlock@sfnewmexican.com.

By the numbers

• Avg. gas price in Santa Fe: $2.90/gallon
• Avg. gas price nationwide: $3.08/gallon
• General fund revenues from oil and gas: (fiscal years)
• 2011: $780 million
• 2010: $790 million
• 2009: $975 million
• 2008: $1.2 billion
• 2007: $1 billion
• 2006: $1.15 billion

ON THE WEB

• Track local gas prices or create a chart of historical prices at www.newmexicogasprices.com.
• Read Tom Kloza's oil blog at www.speakingofoil.com.