New Jersey Gas Tax Hikes to Record High on January 1st
As the clock strikes midnight on January 1st, New Jersey drivers will be facing a significant increase in gas prices due to a surge in fuel taxes. The largest hike since the COVID-19 pandemic took hold has brought the total tax rate for gasoline to 49.1 cents per gallon and diesel to 56.1 cents per gallon.
The price adjustment is not without precedent, as New Jersey's fuel taxes have been adjusting automatically to hit revenue targets set by law. In 2016, former Governor Chris Christie signed legislation reauthorizing the state's transportation trust fund, which includes fuel taxes. If fuel use declines, the taxes increase; if it rises, they decrease.
According to Treasury officials, fuel use is projected to decline slightly in the current fiscal year but rising revenue targets are primarily driving the new increase. The law requires the trust fund to collect approximately $2.1 billion from fuel taxes this year, up from just over $2 billion last year.
Governor Phil Murphy signed legislation reauthorizing the transportation trust fund and increasing its revenue targets in 2024, which also raised New Jersey's gas tax rate by about 2 cents annually. The state's total gas tax rate consists of two separate taxes: the Petroleum Products Gross Receipts Tax and the Motor Fuels Tax.
The petroleum products tax will rise to 38.6 cents per gallon for gasoline and 42.6 cents for diesel, while the motor fuels tax remains unchanged at 10.5 cents per gallon for gasoline and 13.5 cents for diesel. This increase marks the largest hike since fiscal year 2021, which followed the pandemic's impact on fuel use.
New Jersey Monitor is a non-profit news network supported by grants and donations from various sources, including States Newsroom.
As the clock strikes midnight on January 1st, New Jersey drivers will be facing a significant increase in gas prices due to a surge in fuel taxes. The largest hike since the COVID-19 pandemic took hold has brought the total tax rate for gasoline to 49.1 cents per gallon and diesel to 56.1 cents per gallon.
The price adjustment is not without precedent, as New Jersey's fuel taxes have been adjusting automatically to hit revenue targets set by law. In 2016, former Governor Chris Christie signed legislation reauthorizing the state's transportation trust fund, which includes fuel taxes. If fuel use declines, the taxes increase; if it rises, they decrease.
According to Treasury officials, fuel use is projected to decline slightly in the current fiscal year but rising revenue targets are primarily driving the new increase. The law requires the trust fund to collect approximately $2.1 billion from fuel taxes this year, up from just over $2 billion last year.
Governor Phil Murphy signed legislation reauthorizing the transportation trust fund and increasing its revenue targets in 2024, which also raised New Jersey's gas tax rate by about 2 cents annually. The state's total gas tax rate consists of two separate taxes: the Petroleum Products Gross Receipts Tax and the Motor Fuels Tax.
The petroleum products tax will rise to 38.6 cents per gallon for gasoline and 42.6 cents for diesel, while the motor fuels tax remains unchanged at 10.5 cents per gallon for gasoline and 13.5 cents for diesel. This increase marks the largest hike since fiscal year 2021, which followed the pandemic's impact on fuel use.
New Jersey Monitor is a non-profit news network supported by grants and donations from various sources, including States Newsroom.
they're gonna hike the tax again this year & it's gonna hurt me too fam gotta break out the coupons or somethin 
anyway guess all that covid stuff changed things & now we're payin more 
how can we expect ppl to drive with prices rising like this? and btw what's the deal with all these automatic tax increases? it feels like they're just trying to milk us dry 
... I mean, who doesn't love a good excuse to break the bank? 
. But seriously, who does that? It's January 1st, a time when most of us are trying to make a fresh start, not get dinged with yet another tax hike 
.
i feel bad for all those nj drivers having to shell out more cash at the pump
what's up with these gas tax hikes tho? like, i get it we need roads and stuff, but 49 cents per gallon?! that's crazy 
. Now it's like, what's up with all these taxes?! I mean, I get it, the state needs money for roads and stuff, but can't they just...I don't know...raise the taxes on people who make more than us or something? 
. Now it's all about the benjamins, baby 
.
its already so expensive to fill up my tank in nj, i dont think my wallet can handle it 
.