TRENTON, N.J. (AP) — New Jersey will raise its gasoline tax by 0.9 cents per gallon, effective Oct. 1, Gov. Phil Murphy's administration said Friday. The roughly 2% increase comes after the gas tax fell in the previous two years.
The tax rate combines two different levies commonly referred to as the gas tax in the state and will climb to 42.3 cents a gallon from 41.1 cents.
State officials say fuel consumption fell short of the state’s projections for the year. As a result, a state law enacted by former Gov. Chris Christie in 2016 requires a rate increase to support funding for transportation infrastructure.
The law called for state funding for bridge and road projects to remain steady at $2 billion annually for eight years. Every year the treasurer and legislative officials review revenue and set the tax rate to reach the target figure.
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Last year the tax fell by a penny a gallon. The year before it dropped 8.3 cents.
The rising tax comes as some signs point to cooling prices after a period of high inflation.
Gas prices dropped to $3.65 this month, according to AAA, lower than the national average of $3.81 per gallon.