Phone: 732-256-9646

Mon-Fri: 9:00am – 5:00pm

Fwd: Road Warrior: Gas Tax Signed, Bottle Deposits, Govt Event

March 28, 2024

Fuel Tax Increase/EV Fee Officially Signed into Law

As expected, Governor Murphy signed into law the bill to authorize and fund the TTF with higher fuel taxes. The rate increases will be the same for gasoline and diesel motor fuel. Under the language of the bill, there should be no change in tax rate until January 1st. The advocates have claimed the increase will be 1.9¢ a gallon, but we expect it to be closer to 3.5¢ a gallon. There will be NO floor stocks tax on existing gallons in the ground when the rates are increased, so have no fear of that burden. 

Though we certainly opposed this increase as being too high, now that the issue is over its worth talking about how much worse it could have been. If all the bill did was adjust the target revenue collection for inflation since 2016, we would be looking at a 13¢ a gallon increase starting immediately. Instead, it'll take five years to reach a rate increase that will likely be smaller than that. It means in 2029 the revenue target will be $2.37 billion, even though the 2016 revenue target of $1.95 billion is actually worth $2.52 billion right now, and of course 5 more years of inflation will erode that further. Such a sharp and immediate tax increase would have completely eliminated our tax advantage over Pennsylvania and led to fewer gallons sold, forcing the rate up higher such that we could have been looking at something more like an 18¢ a gallon increase before long. 

Public opposition to this funding proposal was also much smaller than it was in 2016, when the issue was publicly debated for months. In hindsight, they probably could have gotten away with a larger increase. There was also a real chance that they might have resurrected the idea of extending the sales tax to motor fuels, which would have been a huge regulatory burden for every station owner. At current prices that would be about 22¢ a gallon more for regular gas, but would have let them say they hadn't raised any existing tax, just closed a 'loophole'. 

There was also serious pushback against closing the current subsidy that lets EV owners get away with using the roads and not paying to maintain them (even though EVs are about 30% heavier than gas-powered vehicles). 32 states have a similar kind of registration fee as what NJ now has, though our rate of $250 a year (increasing gradually to $290) is the highest in the nation, and actually higher than what many motorists pay in total gas taxes per year. Environmentalists were pushing to lower the rate to as little as $75 a year.

State Govt. Hosts North Jersey Business Networking Event

Next Wednesday, April 3rd, the NJ Business Action Center, part of the state government, is hosting an event for small business owners to network and learn more about various state programs which may benefit you, as well as have some reps from other state agencies.

It will be held at High Tech High School, Frank Gargiulo Campus, 1 High Tech Way, Secaucus from 11am-2pm. 

They describe it as an opportunity to “engage in informative interactions and explore over 40 financial, mentor, and technical assistance services available to empower your business. Seize the opportunity to connect one-on-one with representatives from key state agencies including: NJ Economic Development Authority, Department of Labor and Workforce Development, Department of the Treasury, the State Library, Board of Public Utilities, NJ Small Business Development Center, and more to help your business grow and thrive!”

You can find more info at:

Bottle Deposit Law for NJ Discussed

This week the Plastics Advisory Council, which exists within the NJ DEP, held a day-long meeting to discuss whether New Jersey should create a bottle deposit program like what exists in New York and a few other states. You can read the full comments NJGCA submitted HERE. Basically, our main concern is the burden this would inflict on small businesses, who would be required to sift through a customer's garbage and count up the number of bottles and give them 10¢ each, then arrange for secure storage and collection of all the bottles. There have been attempts to do this in the past, including major bills in 2016 and 2008. In those bills, the definition of seller was so broad that even a repair shop with a vending machine would be required to accept people's bottle returns, and then arrange proper recycling disposal. We will continue to monitor this push, as some leading legislators have already suggested they support bringing a bottle deposit program to NJ.

New Credit Card Settlement Is a Bad Deal for Merchants

There was some news this week that seemed at first like it might be good, but actually appears to be an attempted poison pill. Visa and MasterCard announced a settlement regarding one of the several lawsuits against them for illegal anticompetitive behavior. It consists of the two companies promising to charge about $6 billion a year less from merchants for 5 years, just a fraction of the $170 billion a year they currently gouge through their interchange rates. It seems Visa and MasterCard are promoting this settlement in part to try and dampen the momentum we have in Congress for the Credit Card Competition Act, which would actually bring about some meaningful reform and lower fees by a greater amount–and permanently. You can read more details HERE

Keep an Out for Skimmers!

It seems almost every day there's a different news story talking about some business that found some criminal had slipped a skimmer over their credit card processing terminal. Gas pumps, c-stores, and ATMs have been the biggest targets for criminals (and occasionally dishonest employees). Make sure you and your employees know to regularly check to see if someone has slipped one of these devices on your terminals. 

Happy Easter

We wish a Happy and Healthy Easter to all those celebrating this Sunday, we hope you enjoy celebrations with family and friends!

Rack Averages

Date Rack Avg Avg w Taxes Low Rack
03/21 241.24 $3.0194 232.41
03/22 241.06 $3.0176 229.43
03/25 241.44 $3.0214 230.58
03/26 236.67 $2.9737 225.26
03/27 234.99 $2.9569 222.38
Date Avg Retail Avg Margin Diesel Rack Avg
03/21 $3.29 0.26 273.89
03/22 $3.29 0.28 272.47
03/25 $3.30 0.28 275.00
03/26 $3.30 0.28 269.44
03/27 $3.30 0.32 267.60

News Worth Knowing:

Member Benefit Partner (MBP) Spotlight: C-3

C-3 Technologies provides a full line of services to support owners and operators of underground 
storage tanks in NJ. These services include:
• Annual Compliance Testing – Tanks, Lines, Vapor Recovery and Cathodic Protection Testing
• Monthly Compliance Program – The original and most comprehensive compliance program in the industry.
• Maintenance Services – Equipment service including dispensers, monitoring systems submersible pumping systems and lighting.
• Construction Services – Full line of construction services from tank installations to spill bucket replacements.
• Calibration – Fuel Dispenser Calibration
• License and Permitting Assistance – Assistance with UST Registrations, General Air Permits, and Community Right to Know Surveys
• NOV Resolution – Guidance and assistance with the resolution of Notices of Violation issued by NJDEP
• Vac Truck Service and Waste Disposal
Member of NJGCA, Petroleum Contractors Equipment Association, Petroleum Equipment 
Institute, National Association of Corrosion Engineers and NFPA

Contact: Manny Alvarez, 732-348-8570 ext.100, 

Available Real Estate

Station for Sale

Thriving High Profit Gas/Service Station close to Major Highway in Prime Location. 

This Exclusive Gas Station is the Sole Provider in the entire town, achieving a remarkable fuel profit of up to and sometimes over 1$ a gallon. Consistently selling 45,000 gallons monthly. Most fuel customers come from Highway so fuel prices do not have to be competitive. 

Also included with the Property is a Reputable High End Auto Repair Facility. Repair shop has all required Specialty and Diagnostic Tools for servicing mostly High End Vehicles. Advertising is no longer used do to an enormous Demand and large Customer Base. Repair Business has has potential for increased profitability and expansion, the business is open to experienced buyers for a possible partnership or profit sharing arrangement. Location is 1 out of 100. Fuel sales make 20-40K a month and repairs can do the same with the right operator. 

This one of a kind opportunity can include seller financing for those with High-Level Automotive or Gas Station Experience.

Contact Greg

Cape Harbor Shell

795 Route 109

Unit B

Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 

Our Road Warrior newsletter is brought to you by the following Member Benefit Partners:

New Jersey Gasoline-Convenience-Automotive Association
615 Hope Road, Bldg. 2, 1st Floor
Eatontown, NJ 07724


Phone: 732-256-9646

You are receiving this email because you signed up for alerts from New Jersey Gasoline-C-Store-Automotive Association.
Click here to unsubscribe from this mailing list.