New Jersey drivers may soon face a setback in their recent fuel price relief. The state's Treasury Department has announced a 4.2-cent per gallon increase in the gas tax, effective January 1, 2026, which could reverse the current low gas prices. This adjustment is part of an annual strategy to maintain funding for road repairs and transportation infrastructure. The current tax rate is 49.1 cents for regular gas and 56.1 cents for diesel, and the hike is due to lower-than-expected fuel use over the past fiscal year. Experts attribute the current low prices to improved global oil supplies and reduced demand during colder months. However, this relief might be short-lived, as the tax hike could impact New Jerseyans' budgets, especially those already planning for holidays and heating bills. The state's average gas price has been steady at around $2.96 per gallon, a far cry from the peak of $5.05 in mid-2022. Motorists are advised to fill up now to avoid the potential increase in costs.
