New Jersey is set to increase its gas tax by 2.6 cents per gallon starting January 1, 2025. This change follows a significant tax hike in 2017 that raised the gas tax to 44.95 cents per gallon, making New Jersey the state with the 8th highest gas tax in the United States. Currently, the average driver in New Jersey pays approximately $301 annually in gas taxes, which has sparked criticism regarding the government's handling of gas pricing and consumer autonomy. The state also maintains a ban on self-serve gas stations, further limiting consumer choice in how they purchase fuel.
In a broader context, as Massachusetts prepares for the holiday travel season, the average gas price there stands at $2.97 per gallon as of December 9, 2024. This price reflects a national trend of declining gas prices, with the U.S. average recently dropping to $3.175 per gallon, the lowest in over three years. The decrease in prices is attributed to rising gasoline inventories and seasonal changes in demand, encouraging nearly 80 million Americans to travel by car this Thanksgiving.
While New Jersey's tax increase may complicate the financial landscape for drivers, the overall trend of lower gas prices in states like Massachusetts and Minnesota—where prices have fallen to $2.87 per gallon—could provide some relief for travelers this holiday season. However, the potential for new regulations in Massachusetts regarding gasoline sales could alter the landscape for fuel availability and pricing heading into 2025. As discussions continue around gas pricing and regulation, the impact on consumer behavior and travel plans remains to be seen.