New Jersey fuel rates dip starting Oct. 1

Truckers and motorists fueling in New Jersey are two days away from the start of a slight break in fuel tax expenses.

Each October the state revises gas and diesel rates to adjust for any shortage or surplus during the prior fiscal year. As a result, starting Saturday, Oct. 1, fuel rates will drop by a penny.

The price break marks the second year in a row fuel rates in the state have decreased. One year ago, truck drivers and motorists received an 8.3-cent decrease in fuel rates.

Oct. 1 changes

The state’s fuel rate includes two components. Since October 2021, the petroleum products gross receipt tax has been set at 31.9 cents for gas and 35.9 cents for diesel.

Additionally, the motor fuels tax rate on gas is 10.5 cents. The diesel rate is 13.5 cents.

The total tax rates for gas and diesel are 42.4 cents and 49.4 cents, respectively.

As of Oct. 1, the petroleum products gross receipt tax on gas will decrease to 30.9 cents and the diesel tax will dip 34.9 cents. When combined with the motor fuels tax, the total tax for gas will be 41.4 cents and total diesel tax will be 48.4 cents.

Why the fuel tax changes?

A 6-year-old state law requires a steady stream of revenue to support the state’s Transportation Trust Fund. The rule requires the state treasurer to adjust the tax rate each year to ensure it brings in revenue needed to pay the bills for transportation work.

The fund is required to provide $2 billion annually to support infrastructure work.

State Treasurer Elizabeth Muoio said the upcoming fuel rates decrease is due to actual consumption in fiscal year 2022 being “moderately above” projections made in August 2021. Additionally, she notes that consumption in the current fiscal year is projected to be slightly above last fiscal year’s levels.

“We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs,” Muoio said in prepared remarks.

Changes elsewhere

In addition to fuel rate changes in New Jersey, the state of Arkansas also has rate adjustments that take effect the first of the month.

Since Oct. 2021, Arkansas collects 24.8 cents on each gallon of gas purchased and 28.8 cents on each gallon of diesel.

On Saturday, the gas rate will dip to 24.6 cents and the diesel rate will decrease to 28.4 cents.

The next round of fuel rate adjustments in states will occur on Jan. 1.

At that time, scheduled rate changes could occur in states that include Florida, Georgia, Nebraska, New York, North Carolina, Pennsylvania, Utah, and West Virginia. LL

More Land Line coverage of news from New Jersey is available.