Two New Jersey Republican legislators are urging their fellow legislators to temporarily suspend the state’s gas tax as fuel prices continue climbing.
Assembly members Vicky Flynn and Gerry Scharfenberger are asking the Legislature and Governor Mikie Sherrill to enact a gas tax holiday until fuel prices stabilize and return to what they described as pre-spring levels.
“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,” Flynn said in a statement. “Let’s give our residents even a temporary fix to the state’s perennial affordability crisis. Any little bit helps.”
According to the lawmakers, gas prices in New Jersey have risen 54% since late February, climbing from an average of $2.91 per gallon to $4.52 today. They said the average driver is now spending roughly $60 more per month on fuel, with some analysts predicting prices could exceed $5 per gallon by Memorial Day weekend.
The renewed push comes as New Jersey’s gas tax just experienced another increase. As of January 1, the state’s gasoline tax increased by 4.2 cents per gallon, bringing the total state tax on gasoline to 49.1 cents per gallon. That includes 38.6 cents from the petroleum products gross receipts tax and 10.5 cents from the motor fuels tax.
The tax revenue, projected to total about $2.1 billion in fiscal year 2026, is constitutionally dedicated to the state’s Transportation Trust Fund, which finances road, bridge and transit projects, including operations at the New Jersey Department of Transportation and NJ Transit.
New Jersey consistently ranks among the states with the highest gas taxes in the nation.
The proposal mirrors efforts in several Republican-led states, including Georgia, Indiana and Utah, which have temporarily reduced or suspended fuel taxes in response to rising gas prices.
At the federal level, U.S. Rep. Jeff Van Drew has introduced legislation that would suspend the federal 18.3-cent gasoline tax for 18 months, aligning with calls by President Donald Trump for a temporary federal gas tax moratorium.
Sherrill, however, has expressed skepticism about suspending New Jersey’s gas tax, arguing the state relies heavily on the revenue to fund transportation infrastructure projects. Speaking to reporters on Tuesday, the governor indicated the administration is focused more broadly on affordability measures and holding the federal government accountable for rising energy costs rather than freezing the state gas tax.
This will not work, it will only cause the price to go up further. When government gets involved to artificially lower the prices of a commodity, even if it’s by just removing a tax, the demand for said commodity rises because more people can now afford it. More demand without increased supply, causes prices to go right back up to whatever the market can bear. Taxes are and have been built into the price of gas for a while now, so to the consumer it will look like the price has gone down, and that will directly increase the demand for gas. Instead of the government getting that profit, the gas companies will earn it. This is assuming the discounts will trickle down to the pump to begin with, but even if it does lower the pump price for a short while, we’ll be at this price again shortly after.