NJ drivers paying more at the pump as gas tax hike takes effect

<p>The gas tax rose Monday by 4.3 cents to 41.4 cents per gallon, an increase of more than 10 percent.</p>

News 12 Staff

Oct 1, 2018, 9:43 AM

Updated 2,040 days ago

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Drivers in New Jersey are now paying more for gasoline.
The gas tax rose Monday by 4.3 cents to 41.4 cents per gallon, an increase of more than 10 percent.
The hike stems from a 2016 law to fund projects for bridges, roads and tunnels. It calls for a steady revenue stream to support the $2 billion-a-year fund for road and bridge work.
The Murphy administration says that the tax needed to increase this year because drivers did not purchase enough gasoline within the last two years, meaning the tax revenue was not as much as projected.
This is the second time the gas tax has gone up since 2016, when it stood at 14.5 cents per gallon. Before that, the rate hadn't escalated in three decades.
New Jersey was once known for having very cheap gas. But some in the gasoline industry say that they fear that the higher tax means that people from out of state may stop coming to New Jersey to fill up their tanks.
Former Gov. Chris Christie originally signed the bill to increase the tax.
The boost means New Jersey has the fifth-highest gas tax in the country, up from No. 8, according to 2017 data from the conservative Tax Foundation. But it's still lower than neighboring New York and Pennsylvania.
The Associated Press wire services contributed to this report.


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