Starting January 1, 2025, New Jersey drivers will see a 2.6-cent increase per gallon in the state gas tax, state officials announced Monday. The adjustment, part of a law enacted earlier this year, is designed to ensure funding for the Transportation Trust Fund, which supports road construction projects and NJ Transit’s capital needs.
The tax increase stems from the Petroleum Products Gross Receipt Tax (PPGRT), one of two separate taxes on gasoline and diesel fuel in New Jersey. With the new rate, drivers will pay a combined 44.9 cents per gallon for gasoline and 51.9 cents per gallon for diesel fuel. The law allows for annual adjustments to the tax rate through 2029, based on whether revenue targets are met.
State officials project a slight increase in fuel consumption—0.6%—in Fiscal Year 2025 compared to the previous year. The additional revenue is expected to contribute to long-term funding goals for the Highway Fuel Cap, with projections reaching $2.115 billion for FY 2026 and climbing to $2.366 billion by FY 2028 and FY 2029.
“Based on our review of the consumption data, combined with the requirement to meet the new statutory target, we have determined that the new formula dictates a 2.6 cent increase this coming January,” said State Treasurer Elizabeth Maher Muoio. “We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs.”
We have truly foolish people in state government.
Once upon a time when our state gas taxes were low, people always made sure to fill up in New Jersey when they were passing by. Anyone, car truck or bus, that was passing through New Jersey would always make sure to fill up in New Jersey in order to save at least 50 to 60 cents a gallon, and sometimes even more. For a regular car filling up, that might be around $10, but for a truck or a bus that puts in 150 or 200 gallons, that’s a lot of cash!.
Anyway now, that gas price is here in New Jersey are on par with a lot of places in New York where it is fairly drivable, as well as places in Pennsylvania and even further south, there’s really no reason to make yourself crazy and worry about running out of gas, just to fill up in New Jersey.
When gas taxes were raised about 10 years ago, the law going into effect said that if the state would not get the same revenue in gas taxes, that they would raise the taxes again. Well when you tax people to the point where it’s not worth it for them to fill up in New Jersey, they’re not going to buy gas in New Jersey so all those truckers that were passing through New Jersey and putting 200 gallons in their tanks like it was nothing, or now going to other nearby states. There’s no reason to be concerned and push yourself to get into New Jersey. The same thing would buses. Cars also, I am a driver who drives about 25,000 mi a year, a lot of it outside the state of New Jersey. When I’m in many areas of New York, such as Newburgh etc, I’m not pushing myself to get back to New Jersey just to save the money on a fill up because it’s just about equal over there.
Thank you New Jersey and all your stupid people in government who don’t understand the first thing about economics 101.