The Real Reason Why New Jersey Gas Prices Keep Increasing

Anyone who lives or vacations in New Jersey knows about how the Gas Prices spike every summer.  The assumption was this would be an adjustment to the busy travel season along with "Supply and Demand".

But now there will be another culprit for the rising gas and you can point the finger directly to the politicians in Trenton.

In New Jersey, taxes on Gasoline and Diesel automatically adjust each year to meet the revenue goals for supplying the state's Transportation Fund.  The purpose of this fund is to improve infrastructure.

Why New Jersey Gas Prices Are Increasing

But this year those Revenue Targets will rise by roughly 18 percent over the next five years which will result in increases to the Gas Taxes.  New Jersey Governor Phil Murphy has signed new legislation this year that will increase the Revenue Target for the Infrastructure Fund.

Since the Gas Taxes directly fund these Revenue Goals, the tax will increase by an average of two cents per year until July 2028.  But it is not as simple as just a $0.02 increase at your local Gas Station.

Prices at the Gas Stations will go up based on the need to meet those increased Revenue Targets.  The $0.02 increase is an average based on the 18 percent increase over the next five years, it is not a literal number to gauge the prices.

New Jersey is attempting to be one of the states that will phase out the sale of new gas-burning vehicles by 2035; This increase to the Gas Tax seems counterproductive to have the funding of the state's Transportation Infrastructure tied to something that will be "phased out" in the future.

Isn't it bad enough that prices at the gas pump are going to increase over the next five years and now you want to phase out gas-burning automobiles?

New Jersey Taking Money From Electric Vehicle Owners

The other major item in this new legislation is that New Jersey is creating an Annual Registration Fee for Electric Vehicles.  On July 1st of this year, all residents who own Electric Automobiles must pay $250 for their registration.

The price will go up $10 each year until it caps at $290 in July of 2028.  So whether you are driving a gas-burning automobile or an electric vehicle, New Jersey is finding new ways to take money out of your pocket each year.

The Garden State is already the third highest in the United States in Household expenses, but thank you to Governor Phil Murphy and the Trenton Politicians for making us pay more money for daily essentials.

Unlike Governor Phil Murphy and the Trenton Politicians, these New Jersey towns cut their Property Taxes and are doing what they can to alleviate the financial burden on their residents: