NJ Gas Prices To Jump Again: Here’s How Much And When

A new year is right around the corner, and with the resolutions and confetti comes another gas price hike.

Once again, gas prices across the state are projected to increase next year, according to the New Jersey Department of the Treasury.

Starting Jan. 1, gas prices will increase by 4.2 cents per gallon, state officials said.

When including motor fuels tax, this increase will make the total tax rates that motorists pay 49.1 cents per gallon for gasoline and 56.1 cents per gallon for diesel fuel.

This comes after the price was just increased by 2.6 cents at the beginning of 2025. Between 2017 and 2021, gas prices either remained the same or increased, according to state data.

It was in 2022 and 2023 that gas prices were actually reduced by a total of 9.3 cents per gallon, until increasing again in 2024. See the chart below, provided by the New Jersey Department of the Treasury:

Why The Increase?

Officials said the increase is to support transportation infrastructure across the state. Specifically, the additional revenue will go towards the state’s Transportation Trust Fund (TTF) program.

A 2024 New Jersey law requires the TTF to provide around $11 billion over five years to “support critical infrastructure improvements to the state’s roadways and bridges,” according to the treasury department.

Therefore, the state has adjusted the Petroleum Products Gross Receipt Tax (PPGRT) rate to meet that $11 billion goal by 2029. It could also mean more increases in the future.

“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,” said State Treasurer Elizabeth Maher Muoio in a statement. “We emphasize that this dedicated funding stream continues to provide billions of dollars across the State to support our critical transportation infrastructure needs.”

As of July 2025, New Jersey has the eighth-highest gas prices in the country, just behind Maryland and before Virginia.