Here's why NJ's gas tax will climb by nearly 3 cents starting New Year's Day
NEW JERSEY -- Filling up your vehicle's gas tank in New Jersey will cost an extra 2.6 cents a gallon starting on New Year's Day.
Democratic Gov. Phil Murphy's administration said Monday the state's gas tax will climb about 6% to 44.9 cents a gallon.
The change stems from a review required under a new law to support the state's fund for transportation infrastructure through 2029.
State Treasurer Elizabeth Maher Muoio said that in order to hit a statutory target of about $2 billion, the law requires the tax on petroleum products be adjusted to meet the revenue requirement.
The breakdown goes like this: on Jan. 1, 2025, the gas tax will go by 2.6 cents to 34.4 cents for gasoline and 38.4 cents for diesel fuel. That's on top of about a dime already charged for motor fuel tax.
It's the timing that makes motorists upset because things are fiscally tight for so many.
"I mean it is very tough. I've got two kids and two cars, my wife drives, I drive. So, it's very tough trying to live and maintain, try to find a balance," said motorist Francis Yenko.
The increase would keep New Jersey among the top 10 or so states with the highest tax on gasoline in the country, according to nonprofit Tax Foundation.
The tax rate can go up or down under the law. Under the previous transportation trust fund legislation, the rate was evaluated every summer, and went up less than a penny last year. The year before that it dropped by a penny, while it decreased by 8.3 cents in 2021.
The owners of gasoline station and convenience stores selling fuel have no choice but to pass the gas tax hike onto their customers. They say it only hurts the gas-selling business in the state.
"People used to go out of their way to fill up in New Jersey, whether they are from upstate New York or going back and forth between the city, or Pennsylvania into the state. Now we're about even with those other states and in some cases we're more expensive," said Eric Blomgren, Executive Director of the New Jersey Gasoline Convenience and Automotive Association.
The national average for a gallon of gas is $3.05, according to AAA, higher than New Jersey's average of $2.98.
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