the staff of the Ridgewood blog
Ridgewood NJ, New Jersey drivers will soon see a small increase at the pump. Beginning January 1, the state’s gasoline tax will rise by 2.6 cents per gallon, part of an effort to fund the Transportation Trust Fund (TTF) ie… the Transportation Slush Fund . The announcement, made by the Department of the Treasury, formalizes a plan set in motion by legislation passed in March.
Why Is the Gas Tax Increasing?
The additional revenue from the gas tax is vital to meet the state’s growing transportation infrastructure needs. According to Treasury officials, the fiscal year 2025 Highway Fuel Cap is set at $2.032 billion, a $84 million increase from the previous year. This funding target will continue to rise annually, reaching $2.366 billion by fiscal year 2029.
The increase stems from a statutory formula that aligns with the state’s commitment to maintaining and improving its roads, bridges, and public transit systems.
Treasurer Elizabeth Maher Muoio explained, “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.”
What Does This Mean for Drivers?
Effective January 1, the Petroleum Products Gross Receipts Tax will change as follows:
- Gasoline tax: Rising from 31.8 cents to 34.4 cents per gallon
- Diesel tax: Increasing from 35.8 cents to 38.4 cents per gallon
With the base motor fuels tax included, this brings the total tax rates to:
- Gasoline: 44.9 cents per gallon
- Diesel: 51.9 cents per gallon
How Do Current Gas Prices Compare?
As of now, New Jersey drivers are paying an average of $2.98 per gallon, according to AAA. This is slightly higher than last month’s average of $2.92, but significantly lower than the $3.27 drivers paid a year ago. The state’s average is also six cents below the national average of $3.04 per gallon.
The gas tax increase comes on the heels of modest changes in recent years:
- 2023: Increased by 1 cent
- 2022: Decreased by 1 cent
- 2021: Decreased by 8.3 cents
Why It Matters
The gas tax is a critical component of New Jersey’s strategy to finance transportation infrastructure projects. It supports the TTF, ensuring that roadways, bridges, and transit systems are maintained and expanded to meet the needs of residents and businesses.
While a small increase may not significantly impact most drivers, the funds generated will contribute to long-term improvements across the state.
What are your thoughts on the upcoming gas tax increase? Let us know in the comments below.
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Ha! Welcome to NJ
Thanks to the electric cars being heavier, the roads decline sooner.
The pittance they pay in the registration fee is a LOT LESS than they would pay in a fuel tax.
Only in NJ are there automatic tax increases to pay for the bloated fund.
Time to vote out all the Dems (and Rinos like Chris crispi) who supported this.
how much of this goes to the bloated NJ transit budget and bureaucrap salaries, pensions, and benefits
this is all Chris Christie’s fault, he never should have given in
I used to like CC. He definitely made the wrong moves under Trump. He’s now reduced to being an anti-Trump Republican on such quality broadcasts as The View.
fat boy is insignificant and he thought he would get attention as a 400 lb McCain or Romney
Bye bye lard ass… go hug obama again
Bullcrap! Murphy, Gottheimer and the democrats suck! Get them out of office!