New Jersey drivers brace for 2026 gas price changes

While politicians use issues such as the Economy and Taxes as talking points during election campaigns, the reality for regular Americans is that we still have to pay higher prices for everyday goods and necessities.

We have seen that United States Inflation has increased consumer prices by an average of almost 24 percent since 2020. While rate increases have "slowed" over the last 12 months, the Cost of Living is higher than it has been in five years.

One area where New Jersey residents have been the most negatively impacted is at the gas station. While the average NJ Gas Prices were at $2.17 per gallon in 2020, five years later, we are paying an average of $2.99 per gallon.

The bad news is that what you pay at New Jersey Gas Stations will increase in 2026

The New Jersey Department of the Treasury announced this month that the state's Gas Tax Rate will increase in 2026 in order to meet the new statutory target for the Transportation Trust Fund (TTF) program.

The purpose of the state's Transportation Fund is to maintain the financial revenue to supply the money needed to improve the infrastructure of New Jersey's roads and highways. By state law, the rising revenue goals require an increase of taxes on Gasoline and Diesel.

New Jersey’s gas tax rate in 2026 will increase by 4.2 cents per gallon. State Treasurer Elizabeth Maher Muoio gave the following explanation in a press release:

“Due to the new statutory target, and because actual consumption has trended below last fiscal year’s levels, our analysis of the new formula dictates a 4.2 cent increase this coming January....We emphasize that this dedicated funding stream continues to provide billions of dollars across the State to support our critical transportation infrastructure needs.”

New Jersey Revenue Targets are rising by almost 18 percent from 2025 to 2029 because of legislation that Governor Phil Murphy signed into law in 2024. While NJ is working to "phase out the sale of new gas-burning vehicles" by 2035, they are raising the costs of owning those vehicles over the next few years.