WATFORD CITY, ND – An oil drilling rig is seen in an aerial view in the early morning hours near Watford City, North Dakota. (Photo by Andrew Burton/Getty Images)
The Executive Council approved $1.3 million in additional spending last week to cover increases in construction projects around the state due to the rising cost of fuel and asphalt.
In its request for the funding – which spanned several contracts – the Department of Transportation said the increased cost of oil has driven up the cost of fuel and asphalt. Crude oil is used to make both asphalt and gasoline.
Some of the contracts were originally granted as early as August 2021, while others were granted as recently as April 2022. The additional funds will come from the federal government, according to the requests.
The price tag of a paving project on US 202 and NH 9 in Hillsborough will increase by $250,000, while a paving project in Belmont will climb by $109,000. A Lincoln project will increase by $139,000. A contract to complete paving in Londonderry is going up by $196,000. Projects between Claremont and Newport, as well as Chesterfield and Keene will also increase.
The projects are part of the state’s ten-year transportation improvement plan.
Since March 2021, the cost of oil has nearly doubled from around $70 a barrel to nearly $130 per barrel in March of this year, according to a Bloomberg report. Now, the cost is around $100 per barrel, according to Market Watch.
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