Why is gas cheaper in New Jersey?
New Jersey's gasoline averages $3.36 a gallon, $0.02 below the U.S. average of $3.38. About 45 cents per gallon comes from state taxes. The rest is crude oil, which is roughly half the pump price nationwide, plus the cost of refining and delivering fuel to New Jersey stations.
What you're paying for
New Jersey pays about $0.02 less per gallon than the U.S. average, helped by ample regional fuel supply.
Against its neighbors
Amber line marks the U.S. average of $3.38.
Price over time
New Jersey U.S. average
New Jersey, explained
Why does gas cost about $3.36 a gallon in New Jersey?−
Using the U.S. Energy Information Administration's national price breakdown, New Jersey's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.51 for distribution and marketing, the 18.4-cent federal excise tax, and about 45 cents in state taxes. That puts it $0.02 below the national average of $3.38.
How much of New Jersey's gas price is taxes?+
New Jersey charges about 45 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 19% of the $3.36 pump price.
Does New Jersey have a carbon program or special gasoline blend?+
No. Unlike California and Washington, New Jersey does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.