TRENTON, N.J. – Surging energy costs at home and on the road continue to strain already-struggling New Jersey families. Monmouth County lawmakers want to deliver relief via a gas tax holiday.
Assembly members Vicky Flynn and Gerry Scharfenberger are calling on fellow lawmakers to suspend the state’s gas taxes until markets stabilize and prices return to pre-spring rates.
“While Gerry and I continue to advocate for a permanent reduction of the gas tax and more transparency and oversight of how that money is spent, drivers need relief now. Let’s give our residents even a temporary fix to the state’s perennial affordability crisis,” Flynn said. “Any little bit helps.”
Since late February, gas prices have increased 54% from an average of $2.91 to $4.52 per gallon, with the average driver spending $60 more per month. Experts predict those prices will hit $5 by Memorial Day weekend.
In 2026, the state will collect 49.1 cents on every gallon sold: 38.6 cents for the petroleum products gross receipts tax, which adjusts each year, and 10.5 cents per gallon for the motor fuels tax. Those funds—an anticipated $2.1 billion for fiscal year 2026—are dedicated to the state’s Transportation Trust Fund, which supports the NJ Department of Transportation, NJ Transit and municipal infrastructure projects.
New Jersey ranks among the highest state gas tax rates in the nation, trailing only California and six other states.
“Is anyone surprised that New Jersey once again has the distinction of burdening its residents with some of the highest taxes in the nation?” Scharfenberger asked. “Vicky and I know it’s a stretch to ask the Governor and Legislature to lower taxes, even for a season, to benefit our families. But it’s a step in the right direction.”
