Did you know that you are supporting New Jersey’s critical infrastructure needs each time you fill up your tank at the gas station? And, as of January 1st, you are supporting it with an additional 2.6 cents per gallon.
This new increase, for the Petroleum Products Gross Receipt Tax (PPGRT) portion of your “gas tax” (now at 34.4 cents per gallon), can be adjusted annually. It is added to the fixed rate Motor Fuels Tax portion, meaning there is a total 44.9 cents now taxed on every gallon of gas sold in NJ. With this funding, the state is hoping to provide necessary support to the Transportation Trust Fund (TTF) program which provides funding for the state to fix, change or improve things like roads, bridges, rail and buses.
This may all sound a bit high level to those of you simply seeking to drive around and fill up your tank. But those cents do add up.
“I’ve heard about it,” Atlantic City resident Aaron Kleiner tell Princeton Perspectives, as his tank is being refilled. “I have to get gas either way, but for the next few months I’m going to be commuting from Atlantic City to Princeton, so it is going to add up.”
The good news, even with the increase, is that gas in Mercer County remains about the same as what is sold in Atlantic County. It is also nearly 18 cents cheaper than across the river in Bucks County, PA and a lower cost than all neighboring counties in NJ to the north and east of Princeton.
At Fowler’s Gas on Nassau Street in town, he knows the decision to increase the gas tax comes out every fall. Occasionally, he says a customer complains about the price. Most don’t seem to have an issue.
“I haven’t seen any impact in volume at all since the start of the year,” shares owner Gary Fowler.
At the Exxon Station at the edge of Princeton, situated between State Highway 206 and Cherry Valley Road, the owner agrees he does not see a direct impact of an increased gas tax, but indirectly there could be an affect.
“I have a deal for commission based on a per gallon incentive. No matter the prices, I get paid for each gallon I sell,” owner Sunny explains.
This means if the tax going up leads fewer cars to purchase as many gallons of gas as they have been, Sunny will feel the pain. For now, drivers at his station don’t seem to fear.
“I did not even know there was an increase,” Princeton local Hana Rozensweig states. “I fill up when I need to, it usually costs me about $45 to fill the tank [of her Honda CR-V].”
Nearby Griggstown Farm resident says not only is the increase having no impact on him, he’s buying premium these days. “I am putting 93 in. I am trying to wash the engine right now,” explains Hasan Ahun. “I knew the gas tax was going up, but it’s OK, I need it.”
Sunny fears that the gas tax added to increased gas prices is going to ultimately push more customers towards electric vehicles. He says he’s already seeing it. People are not happy when gas gets more expensive.
“When it was $1.99, my volume was way up! Now, at $2.99, it is down by about 50%,” Sunny notes.
Despite New Jersey’s efforts to get drivers to crossover to electric vehicles, it is projected by the NJ Dept. of Treasury that consumption of gasoline and diesel fuel in 2025 will be 0.6% higher than was seen last year. So, hopefully the cost of crude gas will go down and help the independent gas station owners bring in business.
Lisa Jacknow spent years working in national and local news in and around New York City before moving to Princeton. Working as both a TV producer and news reporter, Lisa came to this area to focus on the local news of Mercer County at WZBN-TV. In recent years, she got immersed in the Princeton community by serving leadership roles at local schools in addition to volunteering for other local non-profits. In her free time, Lisa loves to spend time with her family, play tennis, sing and play the piano. A graduate of the S. I. Newhouse School of Public Communications at Syracuse University, Lisa was raised just north of Boston, Massachusetts but has lived in the tri-state area since college. She is excited to be Editor and head writer for Princeton Perspectives!