Phone: 732-256-9646

Mon-Fri: 9:00am – 5:00pm

Gas Tax Hike, Supply Reserve Threatened, Teaching Opportunity

March 7, 2024

Gas Tax Increase Proposed–and On Fast Track 

Monday night the rumors we've discussed here the last few weeks were proven correct when legislative leadership unveiled their bill to extend the borrowing authorization for the Transportation Trust Fund (TTF) by increasing the tax on gasoline and diesel. We had been hoping for a more modest increase than what they have proposed–which they claim is 1.9¢ per year for 5 years, a total of 9.5¢ a gallon on gasoline and diesel fuel

However, based on our analysis of the bill text and the trendlines we've seen in fuel consumption over the last several years, we believe the actual increase will be larger than that, more like 12.5¢ total over 5 years. And once those 5 years are up, you can bet they will be back looking for additional increases. 

You can read our full testimony with more details HERE

One bright spot is that it does create a new annual registration fee for electric vehicles, starting at $250 a year and increasing to $290 a year. Given that EVs are 30% heavier than traditional gas-powered vehicles, this is the least they should be paying in to the fund.

We are hoping that there will be a broad coalition opposed to the bill, but it looks like this is being pushed through as fast as possible, with the Assembly hearing today, a Senate hearing on Monday, and passage by both houses of the Legislature looking likely on March 18th, with the Governor signing it into law immediately after. As we've discussed before, the construction companies and the unions who represent those workers are one of the most influential and well-funded special interests in Trenton. 

If you have any anecdotal experience about the impact of this increase on your sales, particularly those with stations near the NY and PA borders (currently our tax rate is only about 4¢ a gallon cheaper than NY and 15¢ less than PA) please email Eric@njgca.org as it can be quite helpful in making our case directly to legislators.

Keep an eye out for a legislative call to action to reach out to your elected representatives and tell them this increase is too much. 

Northeast Gasoline Supply Reserve to Be Eliminated by Congress

Speaking of government policy being rammed through in a rush, on Monday we learned that Congress is planning to sell off and completely close down the Northeast Gasoline Supply Reserve, a strategic reserve of 1 million barrels of refined gasoline, 700,000 of which are split between Carteret and Perth Amboy NJ. This Reserve was created in 2014 as a direct reaction to the gas shortages and gas lines we suffered through in the month after Superstorm Sandy hit the state. 

The elimination was buried in the more than one thousand page bill to keep the federal government open and funded. The language was released to the public Sunday night and the bill was passed by the House of Representatives on Wednesday afternoon, rushed through without public hearings in order to prevent a shutdown that would have come Friday night. Once again, our Congress disappoints us.

The only explanations given for this proposal are that it would raise some quick cash now, and that the Reserve is useless because it hasn't been used so far. We would emphasize 'so far'. It hasn't been used because we've been lucky enough to avoid another storm like Sandy, but if a day comes when floodwaters once again knock out our supply capacity, which continues to be based near the coast, then we will certainly be regretting the loss of this Reserve. Perhaps with the pressure off of avoiding a shutdown, our Congressional delegation may be able to save the Reserve before it's permanently gone.

We tried to raise awareness of this foolhardy plan, you can read our press release HERE, an article covering it HERE, and our letter to our Congressional delegation HERE

Training Tomorrow's Inspectors–A Unique Opportunity

Learning a new skillset is often difficult, and having the right kind of teacher can make the difference between success and failure.  

Our long-time instructor, Peter Perrella, has taught thousands of students to earn their Emission Inspectors and/or Emission Repair Technicians credentials. As a Master Tech with years of teaching and turning wrenches under his belt, Peter is able to meaningfully connect with students, draw from his deep experiences, and help them work through the material. Many of you reading this know Peter or have taken his classes over the years.

As good as he is, however, Peter is only one man.  As demand for our training courses has increased after the COVID emergency ended, we have seen renewed interest in our Training Program. We now have a waiting list of interested students, and the need for additional help.

In acknowledging this, and in hopes of expanding our instructional program around the state, the Association wants to hear from any members, their employees, former employees, or other associates that might be interested in teaching one of our courses.

Our courses are typically scheduled every four to six weeks, depending on the demand.  The ideal candidate(s) would be a current NJ State Emission Inspector, be generally knowledgeable, have a good demeanor, and a willingness to learn how to teach our course from Peter and our staff to small groups of interested students.  No prior teaching experience is needed.  

What's more, we would welcome potential instructor candidates from different geographic parts of the state, so as to organize “local” classes to better accommodate students in a given region.

Who could realistically teach?  It might be you, a former or current employee, a younger technician, a seasoned Master Tech, or even a partially retired shop owner looking to give something back to the industry. And, of course, it might be someone who is periodically looking to make a few extra dollars on the side; as the need arises and a class can be organized.

It takes a special kind of person to teach. Imparting knowledge and educating a willing student is a unique skillset, and one that is often undervalued in our industry.  Help us identify those educators to better prepare tomorrow's shop personnel.  

Thanks for your help! If you are interested in learning more or have an ideal candidate in mind, please feel free to email Nick at nick@njgca.org at your convenience.  

Reminder: Upcoming Automotive Trade Show

As you may be aware, one of the largest automotive-related trade shows in the country occurs every year in the Meadowlands: NORTHEAST. It is run by our friends at AASP/NJ. This year NJGCA staff will be attending with a booth, and we encourage all members with repair shops to attend. While AASP focuses on representing the body shops of the state, there are still many exhibitors who offer a variety of products and services to mechanical repair shops. You can check out a floor plan with the exhibitors HERE

We will be near the front with the World Insurance booth. We hope you'll stop in and say hello, we'll have more info about the various programs and benefits we offer. 

The show runs on Friday March 15th 5pm-10pm, Saturday March 16th 10am-5pm, and Sunday March 17th 10am-3pm at the Meadowlands Convention Center in Secaucus. 

Entry to the trade show is free if you register in advance on the show's website HERE. Walk-ins cost $10, but are still free with the attached VIP pass you can download and print out HERE. The pass can also be used to enroll you in a raffle to win $500 when you get there.  

Rack Averages

Date Rack Avg Avg w Taxes Low Rack
02/29 226.41 $2.8711 218.29
03/01 231.79 $2.9249 223.65
03/04 231.00 $2.9170 222.30
03/05 227.15 $2.8785 219.33
03/06 229.42 $2.9012 222.65
Date Avg Retail Avg Margin Diesel Rack Avg
02/29 $3.18 0.34 276.40
03/01 $3.17 0.30 281.09
03/04 $3.17 0.24 275.46
03/05 $3.17 0.25 271.11
03/06 $3.17 0.30 276.20

News Worth Knowing:

Member Benefit Partner (MBP) Spotlight: CBIZ Insurance Services

Why CBIZ Insurance?
CBIZ represents the finest companies in the industry and is positioned to negotiate with the most competitive insurance carriers. As a leader in the auto service/fuel dealers industry, they continue to provide solutions for service stations, c-stores, car washes, repair shops, auto body shops and wholesalers. They understand how to provide a cost effective, flexible and comprehensive insurance program for your business including a dividend program available to NJGCA members.

Multiple Services with a Single Focus: Your Success
Growth and Success. Efficiency and Profitability. It’s likely these goals are top priorities for your business. It is also likely that the daily distractions of financial and employee issues diminish your ability to focus on those goals. CBIZ enables you to dedicate your time to critical business matters by providing custom solutions that help you manage your finances and employees. We offer clients exceptional quality and diverse capabilities with the personal attention your business needs and deserves, all with a single focus: your success.

Contact: Peter Gudzak, 732-581-6001, PGudzak@cbiz.com www.cbiz.com 

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
908-291-7845

Cape Harbor Shell

795 Route 109

Unit B

Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 capeharborshell@comcast.net 

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
eMail: info@njgca.org

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