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NJ Gas Prices Defy Tax Hike: Winter Slump Saves Drivers
7 Jan
Summary
- New Jersey gas prices dropped despite a 4-cent tax increase on January 1.
- Seasonal winter slump and low crude oil prices caused the unexpected decrease.
- Gas prices are expected to rise again around Valentine's Day.
New Jersey drivers saw gasoline prices fall in the first week of 2026, defying a 4-cent per gallon state tax increase that took effect on New Year's Day. This unexpected price drop is largely due to a seasonal winter slump in driving demand and a concurrent fall in crude oil prices, which reached lows of $58 a barrel. Petroleum analysts noted that stations could absorb the tax increase because of these favorable market conditions.
Experts indicate that the current low prices are a result of weak demand during the winter months and OPEC's decision to pause production increases for the first quarter of 2026. This trend is expected to continue through January and into early February, the typical low point for seasonal demand. However, this relief for drivers is anticipated to be temporary, with prices expected to begin rising around Valentine's Day.
