Gas Tax Holiday Highlights Need for Greater Energy Reform

This week, Governor Maura Healey proposed a two-month gas tax holiday to address energy affordability concerns for Massachusetts residents. It’s a policy with bipartisan support – Republican candidate for governor Mike Minogue previously called for a similar tax holiday.

Gas taxes hit home for Bay Staters every time they have to fill up their vehicles – an additional 24 cents for every gallon of gas. But paying at the pump is far from the only energy affordability crisis facing Commonwealth residents.

Energy Costs Are a Top Cost of Living Burden

Among general concerns about Massachusetts being an expensive place to live and raise a family, the cost of utilities was the second-highest concern cited by respondents in a recent MOA poll, only following the cost of renting or buying a home.

In another Suffolk University/Boston Globe survey last fall, respondents said the cost of utilities was the biggest strain on their household budgets. It’s not just residents feeling the squeeze – recent polling from the National Federation of Independent Business (NFIB) found 80% of small business owners say energy costs significantly impact their operations. Retailers Association of Massachusetts President & CEO Jon Hurst told the Boston Globe the state’s small businesses are “drowning” in high energy costs.

Energy Costs Have Been On the Rise for Years

State and federal data show that energy costs in the Commonwealth have been rapidly rising over the last several years.

As of June 2026, residential natural gas has spiked more than 100% compared to five years ago, according to the latest data published by the U.S. Energy Information Administration. The price for a thousand cubic feet – or 10 therms as utility bills typically measure – is $30.66 as of June 2026, compared to just $15.28 for the same amount in June 2021. That could mean roughly doubling the monthly payment for gas for an average Massachusetts household, especially in colder months.

In electricity, Massachusetts residents are paying roughly $0.30 per kilowatt-hour based on available 2026 data from the U.S. Energy Information Administration. That’s increased 31% from five years ago, when the cost was roughly $0.23. For the average single-family home in the Northeast, which uses 10,599 kilowatt-hours of electricity per year, that could translate to roughly $760 in additional annual electricity costs.

This isn’t just national trends at play – recent federal data show Massachusetts has some of the highest utilities costs in the nation.

How Did We Get Here?

While international conflicts have contributed to the recent spikes in energy costs, Massachusetts’ own energy policies have also played a role. In 2022, the state adopted a legislatively-mandated goal of net zero emissions by 2050. It emphasized “clean” energy such as offshore wind production but downplayed sources such as natural gas. The state is primarily fueled by natural gas, although it does not produce any and imports all natural gas consumed by its residents and businesses. Analysis by the Pioneer Institute finds Massachusetts consumes substantially more energy overall than it produces.

In a recent MOA poll, residents indicated support for increased reliance on domestic natural gas, building more capacity such as pipelines to generate it in the Northeast, and exploring other energy sources like nuclear power.

Solutions in the Works

In the last year, state lawmakers have proposed a variety of reforms aimed at boosting energy affordability in the Commonwealth. One bill would build energy grid infrastructure to improve reliability of energy delivery, increase the state’s capacity for energy storage, and support “flexible interconnection” of new energy to the state’s power grid without expensive infrastructure upgrades. However, no one bill acts as a silver bullet, and there are pros and cons to these legislative proposals.

The Governor also proposed reforms to certain surcharges allowed to appear on customers’ bills, accountability measures for costs passed on by utility companies to customers, and reducing barriers for companies to develop new nuclear energy technology. Even Healey’s latest proposal seeks to reduce electricity prices by giving companies flexibility over when they buy electricity to address fluctuating seasonal demand.

Conclusion

Energy is a complicated issue – with prices influenced by state, federal, and international policy. But the fact remains: Massachusetts residents are finding it harder and harder to afford the cost of living here, including skyrocketing energy costs for their homes and vehicles. 

A gas tax holiday provides some reprieve – but residents need additional permanent reforms to make a difference on their utility bills.