News

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

Posted: Updated:
SOUTH AMBOY -

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.

RELATED: State gas tax increase goes into effect Oct. 1

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.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."