New Jersey drivers will face a 2.6 cents per gallon increase in gas tax starting January 1, as part of efforts to build the state’s trust fund for major road and transit projects. The average price for regular gasoline in New Jersey was $2.916 on New Year’s Eve, compared to $3.04 nationally.
Despite the increase, Gas Buddy’s head of petroleum analysis predicts that New Jersey will remain below the national average price per gallon throughout 2025, except during periods of high demand. Patrick De Haan forecasts an average gas price of $3.22 in 2025, with prices fluctuating between $2.89 and $3.46 depending on the season.
External factors such as geopolitical tensions, storms affecting oil supplies, and changes in global demand are more significant influences on gas prices than regional issues like the state’s gas tax increase. The Organization of Petroleum Exporting Countries (OPEC) is currently in a “weak position” due to the Chinese economic slowdown, which has led to lower gas prices globally.
While a potential tariff hike by President-elect Donald Trump could destabilize oil markets and drive up prices, De Haan suggests that a more cooperative approach with oil producers could benefit consumers. The impact of the new tax increase on New Jersey’s gasoline prices will be determined by how it affects overall demand and global market conditions.
Source: https://www.nj.com/news/2025/01/nj-gas-tax-to-raise-pump-prices-on-jan-1-but-will-we-still-be-lower-than-national-average.html