State Treasurer Elizabeth Muoio announced Wednesday that New Jersey’s gas tax rate will remain stable for the coming year.
The gasoline tax and the diesel fuel tax will stay at 41.4 and 48.4 cents per gallon, respectively.
As required by law, the Department of Treasury conducted a review of fuel compensation data that increased the state’s Transportation Trust Fund to $2 billion a year from $1.6 billion. The review aims to determine whether or not there is a steady stream of revenue to support the fund. If not, the taxes could rise if consumption goes down.
“We’re pleased that fuel consumption levels, coupled with our realistic projections last year, have allowed us to avoid an increase in the gas tax rate for this year,” Muoio said. “This dedicated revenue stream has enabled us to disburse billions in funding across the state to bolster our transportation infrastructure and keep New Jersey moving forward.”
Although gasoline consumption in the Garden State is declining, the 4.3 cent increase that Gov. Phil Murphy’s administration put into effect last year helped boost the Petroleum Products Gross Receipt revenue in 2019, which ended June 30. The PPGR currently stands at a 26.9 cent tax rate.
Since the initial law was enacted in 2016, the state has disbursed $4.34 billion into state projects.