New Jersey’s gas tax to fall a penny a gallon on Oct. 1

TRENTON, N.J. — The gas tax in New Jersey will fall by a penny a gallon, or about 2% — the second straight year the levy has declined, Gov. Phil Murphy’s administrated said Monday.

The tax rate combines two different levies that are commonly known as the gas tax in the state and would fall from 42.4 cents a gallon to 41.4 cents.

It's the second straight year the tax has fallen, though this year's drop is a fraction of the more than 8-cent decline of 2021.

The reason for the decline stems from fuel consumption above projections, according to Treasurer Elizabeth Maher Muoio.

The annual evaluation of the gas tax comes as part of a 2016 law enacted under then-Gov. Chris Christie calling for state funding to support bridge and road infrastructure to remain steady at $2 billion annually for eight years. The law calls for yearly adjustments to the fuel tax if receipts don’t meet that level.

The treasurer and legislative officials review revenue and set the tax rate to reach the target figure each year. Last year the tax fell 8.3 cents. It climbed by 9.3 cents in 2020, stayed flat in 2019 and rose 4 cents in 2018.

Murphy, a Democrat, took office in 2018 and was reelected to a second four-year term in a closer-than-expected contest last year.

The falling tax comes amid sizzling inflation levels in recent months but also as the price per gallon of gas eases.

Gas prices dropped to $3.99 earlier this month, according to AAA, down 20% from a high in June and the first time the average fell below $4 since early March.

The decrease goes into effect Oct. 1.