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New Jersey drivers face another gas-tax decision as state officials prepare their annual review of the money that pays for roads, bridges and rail projects. A possible rate change would affect fuel costs for commuters and businesses beginning January 1.
The review is due by November 15. No new increase has been announced. A Treasury spokesman declined comment Thursday on the pending decision.
What officials are reviewing
The state treasurer and the Legislative Budget and Finance Officer review fuel consumption and tax collections each year. A formula determines whether the tax needs to change to meet the Transportation Trust Fund’s revenue target, according to the Treasury Department’s explanation of the annual process.
The formula accounts for the previous year’s shortfall or surplus and expected fuel use in the current year. Rates can move up or down under the calculation.
What drivers pay now
The current state tax is 49.1 cents per gallon of gasoline and 56.1 cents per gallon of diesel. Those rates took effect January 1, 2026, after a 4.2-cent increase, Treasury announced last December.
The state tax is charged per gallon, not as a percentage of the price on the pump. The money supports transportation projects through the state’s Transportation Trust Fund.
The next decision could reach the pump in January
For people who drive to work, and businesses that buy fuel for deliveries or service calls, a higher per-gallon tax would add to the cost of each fill-up. The amount depends on the rate officials set and how much fuel a driver buys.
A January change could be announced by early December if Treasury follows past practice. The coming review will determine the rate; an increase has not been decided.
JBizNews Desk | New Jersey
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