NEW JERSEY - While New Jersey drivers are famously protective of their "no-pump" status, they are currently celebrating a different kind of milestone at the service station. For the first time since the spring of 2021, average gas prices across the Garden State have plummeted below the $2.90 mark, offering a rare moment of relief before a scheduled tax hike hits in just a few days.
NEW JERSEY - While New Jersey drivers are famously protective of their "no-pump" status, they are currently celebrating a different kind of milestone at the service station. For the first time since the spring of 2021, average gas prices across the Garden State have plummeted below the $2.90 mark, offering a rare moment of relief before a scheduled tax hike hits in just a few days.As of December 29, 2025, the average price for a gallon of regular unleaded in New Jersey has settled at $2.84, a nearly 15-cent drop from just one month ago. With the national average also dipping, New Jersey remains one of the most competitive states in the Northeast for fuel—but the window to lock in these "time-capsule" prices is closing fast.
The "Sub-$2.90" Club: Where the Deals Are
The $3.00 gallon is officially a thing of the past in most of New Jersey. In fact, many regions have already blown past that milestone and are now competing to see who can stay under $2.80. If you are traveling through these areas, you are seeing some of the lowest prices in the region:
- Warren County: Leading the state with an average of $2.78.
- Vineland & South Jersey: Hovering right at $2.83.
- Middlesex & Somerset: Currently sitting at $2.84.
- Monmouth & Ocean: Averaging $2.84, with some local discounters dipping even lower.
- Bergen & Passaic: While typically more expensive, even these northern hubs are seeing averages of $2.86.
The "Cheapest in the State" Winner
For those willing to hunt for the absolute floor, reports from the post-Christmas weekend identified several stations in South Jersey and along the Route 1 corridor priced as low as $2.69 per gallon. These prices represent a level of stability that hasn't been seen in the state since the early months of 2021.
The Jan 1st "Tax Spike" Warning
There is a catch to this holiday gift. While prices are currently at a multi-year low, New Jersey's gas tax is scheduled to increase on January 1, 2026.
- The Increase: The State gas tax will rise by 4.2 cents per gallon at midnight on New Year's Day.
- Why it's happening: The adjustment is part of a 2024 state law aimed at meeting revenue targets for the Transportation Trust Fund.
- The Strategy: Experts suggest that the current "plunge" in crude oil prices might absorb some of this tax hike, but drivers should expect an immediate jump at the pump on Wednesday morning.
Why You Should Fill Up Today
The combination of a 4-year low and an impending tax increase creates a unique "buy now" scenario. Between the current seasonally low demand and the transition to winter-blend fuel, the market has provided a perfect floor. However, with the "New Year's Spike" just 72 hours away, today is likely the cheapest day New Jerseyans will see for the foreseeable future.
Before you head out for your New Year's Eve travels, make sure to hit your local station. Even a few cents of savings, combined with the 4-cent tax buffer, could save you enough to cover your first toll of 2026.
