Writer: Joshua Andino
2 min read October 2022 — While inflation remains a key issue for businesses and residents alike, New Jersey’s gas prices remain below the national average as the state expands its EV infrastructure.
Gas prices across the country reached record highs earlier this summer and for the first time reached over $5 a gallon, quickly becoming the most visible example of inflation across a variety of industries. With New Jersey’s goal of becoming a clean energy leader, those considering finally joining the swelling ranks of EV purchasers and drivers might be pleased to note that New Jersey has announced millions of dollars in grants throughout the course of the year, with the intention of building a robust EV charging infrastructure throughout the state, most recently at state parks in Hunterdon, Middlesex, Sussex, Passaic and Burlington counties.
The state is one of the leaders in the transition to green energy and Gov. Phil Murphy’s Clean Energy plan aims to have 330,000 electric vehicles (EV’s) registered in the state by 2025, although gasoline remains an essential part of the operations of New Jersey businesses and their commuting employees. Rising prices impact almost all aspects of the economy, and while the Federal Reserve continues to hike interest rates in its battle to break the inflationary environment the market finds itself in, New Jersey has managed to undercut the national average for the cost of a gallon of gas by about 30 cents, $3.421 to the country’s $3.799, according to AAA.
While the state produces no oil of its own, it nevertheless is served by two operating petroleum refineries and major interstate pipelines, ocean-borne tankers, numerous distribution terminals and thousands of service stations, according to the Fuel Merchants Association of New Jersey. The state also plays a vital role in getting gas where it needs to go, with its status as a logistics hub and its shipping facilities on the Delaware River and New York-New Jersey harbor essential in getting gasoline and other petroleum products to states across the Northeast.
Costs vary by county, however, and as the state with some of the longest commute times, per the U.S. Energy Information Administration, where drivers top-off the tank matters. North Jersey’s Warren, Sussex, Passaic, Bergen and Hudson counties have the cheapest gas in the state. Warren in particular stands at $3.258 for a gallon of regular unleaded. Essex County is slightly costlier, at $3.528 per gallon, while Morris, Union and Middlesex counties hover around the state median and stand at $3.432, $3.430, and $3.411, respectively
Parts of Central and South Jersey lean toward the costlier side of a gallon, however, and motorists may be encouraged to fill their tanks around Burlington County, where the cost currently stands at $3.355 per gallon and provides additional relief for frugal drivers and businesses driving through central and southern New Jersey.
Cape May County, with its $3.570 per gallon price tag, is the most expensive, yet still undercuts the national average by just over 22 cents. Salem, Mercer, Somerset, and Essex counties also rank among the top rankings for the state’s gas prices, with AAA noting all fall in the highest quintile, between Cape May’s 3.570 and Mercer’s 3.475. Finally, Ocean and Gloucester counties find themselves in the median at $3.411 and $3.419 for a gallon of gas.
Despite the regional variation in prices, drivers will be pleased to hear that as of Oct. 1 and for the second consecutive year, New Jersey reduced its gas tax, this time by one penny. A 2016 law stipulates that the tax rate be adjusted each October to ensure it generates about $2 billion for the state’s Transportation Trust Fund. The new tax will be 41.4 cents a gallon, around three cents higher than the national average. The change brings the state’s gas tax down to the 11th highest in the nation, whereas neighboring states, particularly New York and Pennsylvania, remain significantly higher. New York’s gas tax totals at 66.62 cents per gallon, and Pennsylvania, the highest in the nation, stands at 77.10 cents, according to the American Petroleum Institute.
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