TRENTON, N.J. (1010 WINS) -- New Jersey's gas tax will increase by 9.3 cents per gallon in October amid a decrease in gas consumption fueled by the COVID-19 pandemic, the state's Department of the Treasury said Friday.
The 9.3 cents per gallon increase will push the state's tax on gasoline and diesel fuel from 30.9 and 34.9 cents per gallon, respectively, to 40.2 cents and 44.2 cents per gallon, the department said.
Coupled with the federal motor fuels tax, which currently stands at 10.5 cents per gallon on gasoline and 13.5 cents per gallon on diesel fuel, New Jersey's total gas tax will be 50.7 cents per gallon for gasoline and 57.7 cents per gallon for diesel fuel.
New Jersey will have the fourth-highest gas tax of any state in the country when the change takes effect, surpassed only by California, Pennsylvania and Illinois, according to American Petroleum Institute data compiled by the Tax Foundation at the end of July.
"As we've noted before, any changes in the gas tax rate are dictated by several factors that are beyond the control of the administration, State Treasurer Elizabeth Maher Muoio said in a statement, noting that a 2016 law signed by then-Gov. Chris Christie "contains a specific formula to ensure that revenue is meeting a certain target."
"When it does not, the gas tax rate has to be adjusted accordingly in order for us to meet our obligation under the law and fully fund the state's many pressing transportation infrastructure needs," she said.
"Highway fuels consumption took a significant hit in (2020) because of the economic downturn caused by the COVID-19 pandemic," as many people have been working from home and limiting their extracurricular activities, she added.
