Gas prices on the rise

Gas prices jumped up in New Jersey and around the nation in anticipation of hurricane-related supply and distribution disruptions.

AAA Mid-Atlantic says the average price of a gallon of regular gas in New Jersey on Friday was $2.23, up from $2.16 the week before.

Drivers were paying $2.62 a gallon at this time last year.

The national average price for a gallon of regular gasoline was also $2.23, up from $2.18 the previous week. The national average was $2.58 at this time a year ago.

Analysts say that since gasoline stock levels are ample, any significant increases in pump prices should be confined to the impacted areas while “the rest of the country sees minimal change.’’

A 22 percent increase in state gas tax

Meanwhile, New Jersey’s gas tax is going up 9.3 cents a gallon, a roughly 22 percent increase, according to Democratic Gov. Phil Murphy’s administration.

The increase to 50.7 cents a gallon from 41.4 cents goes into effect on Oct. 1.

It stems from a 2016 law that requires the state fund supporting bridge and road infrastructure maintain a $2 billion program annually. It also requires an annual adjustment to the fuel tax if receipts don’t meet that level.

Treasurer Elizabeth Muoio said gasoline consumption dropped about 39 percent from March to May - coinciding with the COVID-19 outbreak _ and leading to a drop in receipts for the fuel tax.

It’s the third year Murphy, a Democrat elected in 2017, has had to review the gas tax. In 2018, the tax increased about 10 percent. Last year the rate stayed flat.

- The Associated Press