Truckers and motorists refueling in New Jersey are two days away from the start of a slight pause in fuel tax spending.
Each October, the state revises gasoline and diesel prices to account for any shortages or surpluses during the previous fiscal year. As a result, from Saturday 1 October, fuel prices will drop by one cent.
The price break marks the second straight year that fuel rates in the state have declined. A year ago, truckers and motorists got an 8.3 cent reduction in fuel prices.
October 1 changes
The state fuel rate consists of two components. As of October 2021, the tax on gross revenue from petroleum products is set at 31.9 cents for gasoline and 35.9 cents for diesel.
Moreover, the fuel tax rate on gas is 10.5 cents. The diesel rate is 13.5 cents.
The total tax rates for gasoline and diesel are 42.4 cents and 49.4 cents respectively.
Effective October 1, the Petroleum Products Gross Revenue Tax on gasoline will decrease to 30.9 cents and the diesel tax will decrease to 34.9 cents. When combined with the fuel tax, the total gasoline tax will be 41.4 cents and the total diesel tax will be 48.4 cents.
Why is the fuel tax changing?
A 6-year-old state law requires a steady stream of revenue to support the state’s transportation trust fund. The rule requires the state treasurer to adjust the tax rate each year to ensure it brings in the revenue needed to pay the bills for the transportation works.
The fund is to provide $2 billion a year to support infrastructure work.
State Treasurer Elizabeth Muoio said the upcoming drop in fuel prices is because actual consumption in fiscal year 2022 is “moderately higher” than projections made in August 2021. , she notes that consumption in the current fiscal year is expected to be slightly higher than in the previous fiscal year. levels.
“We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to meet our critical transportation infrastructure needs,” Muoio said in prepared remarks.
In addition to fuel rate changes in New Jersey, the state of Arkansas also has rate adjustments that take effect on the first of the month.
As of October 2021, Arkansas collects 24.8 cents on every gallon of gasoline purchased and 28.8 cents on every gallon of diesel.
On Saturday, the gas price will drop to 24.6 cents and the diesel price will drop to 28.4 cents.
The next round of state fuel rate adjustments will take place on January 1.
At that time, scheduled rate changes could occur in states such as Florida, Georgia, Nebraska, New York, North Carolina, Pennsylvania, Utah and West Virginia. LL