NJ Gas Prices Are Rising, May Go Higher

NEW JERSEY, — The conflict in Ukraine, combined with rising demand and a limited supply of gasoline, has caused New Jersey gas prices to skyrocket in recent weeks.

According to the American Automobile Association, regular gasoline prices have risen by as much as 20 cents per gallon in the last week. The average is now $3.90, compared to $3.63 one week ago.

With a 7.5% increase in inflation already driving up prices for food, rent, utilities and other items across the country, soaring gas prices could worsen the situation as the cost of transporting items rises, according to the federal government’s consumer price index.

With the international conflict currently happening, it's too early to tell how this will affect overall gas-tax collections in New Jersey. The New Jersey Treasury announced last year that the gas tax rate would decrease by 8.3 cents per gallon, on Oct. 1. Despite that decrease, the current rise of gas prices have offset that benefit.

According to a report by the American Petroleum Institute, New Jersey's per-gallon tax was ranked as the fifth-highest among U.S. states earlier this year.