While attention has been focused on electricity rate hikes, New Jersey’s gas tax will increase by 4.2 cents on Jan. 1.
The state Treasury Department announced earlier this month, “After a thorough review of fuel consumption statistics and consultation with the Legislative Budget and Finance Officer,” the tax will increase to close to 50 cents per gallon.
“The total tax rates that motorists will pay for gasoline and diesel fuel will be 49.1 cents and 56.1 cents, respectively,” the announcement said.
The tax on gasoline has been set by statutory formula since 2017. The increase for 2026 is in part “the result of the 2024 law (Chapter 7) which gradually raises the state’s Highway Fuel Cap from fiscal year 2025 through fiscal year 2029,” the announcement said.
Under the 2024 law, New Jersey’s Transportation Trust Fund program is required to provide nearly $11 billion over five years to support infrastructure improvements to the state’s roadways and bridges.
That is a similar time period for which the state implemented a special registration fee of $250 for electric vehicles, starting in 2024 with a $10 increase each year to 2028. The special fee was to offset the fact that electric car owners would not be paying the gas tax.
Rep. Jeff Van Drew (R-2) called the increase a “punch in the gut” to residents. He said the state has refused to control spending and uses the formula to “stick” the burden on New Jersey families.
