State gas tax increase goes into effect Monday

Posted: Updated:

Drivers in New Jersey can expect to pay a little more at the pump throughout the state starting Monday.

Gov. Phil Murphy announced earlier this month that the state's gas tax would increase 4.3 cents per gallon.

The increase brings the total state taxes to 41.4 cents on each gallon of motor fuels pumped in New Jersey, and 48.4 cents on each gallon of diesel.

Gov. Murphy told reporters he doesn't like raising "any tax," but in the past two years, people aren't buying as much gas as they expected.

The tax hike is to help cover the $2 billion a year that the state needs for transportation projects.  

Drivers may be happy to learn that New Jersey gas prices are still cheaper than Pennsylvania and New York.

Gas station owners tell News 12 that it's not much cheaper.

"It affects business by 25 percent. The gas prices are almost going to be the same as New York," says New Jersey gas station owner Jabbar Singh.

Taxi drivers advise all customers the next time they're looking for a ride, be sure to bring extra cash.

"i just pass it to my clients," says taxi driver Sidney Patricio. "That's the only way to make money - charge them a little bit more."

The Murphy administration blames former Gov. Chris Christie and his team for the hike.  Drivers say the blame game isn't going to do much good since they're still stuck paying 10 percent more at the pump.

The tax increase comes just as AAA mid-Atlantic announced the average price of a gallon of regular gas had dropped by two cents in the state.

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