Home Heating Oil and the New Jersey Gas Tax: What You Need to Know

You may have noticed that New Jersey’s gas taxes have recently spiked at the pump. This is the first time in more than 26 years that we’ve seen a gas tax increase in NJ. And the next change could happen in less than two months. The new tax increase is called the Petroleum Products Gross Receipts Tax (PPGRT) and is meant to fund transportation projects like road and bridge improvements. PPGRT will affect petroleum products such as gasoline, blended fuel and diesel. In regards to home heating oil and the New Jersey gas tax, we understand there may be some questions.

Home Heating Oil and the New Jersey Gas Tax: What You Need to Know

Here’s what you need to know about home heating oil and the New Jersey gas tax:

On November 1, 2016, New Jersey gasoline tax increased by 22.6 cents-per-gallon, climbing from 14.5 cents per gallon, which was the second-lowest in the United States, up to 37.1 cents per gallon, which is now the seventh-highest in the U.S. The new petroleum products gross receipts tax puts a 12.85% on retail gasoline.

For diesel fuel used on roads and highways, PPGRT is scheduled to increase on January 1, 2017 and then again on July 1, 2017. Starting in January 2017, gasoline and diesel PPGRT will be adjusted by the NJ Division of Taxation on a quarterly basis, occurring again at the start of April, July and October.

The recent New Jersey’s gas tax is fixed to consumption (unlike other states), rather than the price of a gallon of gasoline. In other words, the tax rate will not increase or decrease automatically as gas prices go up or down. For example, when more gasoline is sold in the NJ, the tax rate will decrease and if consumption is low, the tax rate will increase in order to make up for the slow revenue.

Home Heating Oil and the New Jersey Gas Tax: Am I Affected?

Thankfully, home heating oil and the New Jersey gas tax are not connected. The oil used for heating your home or business will not be affected by the recent New Jersey gas tax.

 

Rest easy; home heating oil is exempt from this tax.

 

Want to save? Snag some simple tips from our blog, “10 Home Heating Energy Tips for Winter” and get prepared for the cold weather ahead. To read this post, click here.  Lawes Company has been serving customers in Shrewsbury, NJ with premium fuel for heating oil delivery for decades. Contact Lawes today to learn more at 732-741-6300.

It’s no mystery that keeping your thermostat in check will help save money. It is estimated that you can save 1% for every degree you adjust down in the winter.

4. Insulate Outlets

Stop heat loss and drafts with inexpensive, easy-to-install foam insulating gaskets on the back of electrical wall switches and outlets.

5. Bubble Wrap Windows

In the fall, lightly mist the inside of uninsulated windows with water and apply a sheet of sized bubble wrap, bubble side facing the pane. The bubble wrap will cling to the window all winter long, boosting the insulating value, and come off neatly in the spring.

6. Close Closet Doors

Help keep your energy costs lower by closing closet doors so you aren’t needlessly heating and cooling closet space.

7. Sign Up for Automatic Oil Delivery Service

Save time and money by signing up for an automatic oil delivery service. You won’t need to keep checking your tank to try to figure out how much oil you have left; leave that up to us. Our tank experts at Lawes Environmental Services will track your oil heat usage and deliver a new supply to your home when you need it. We even deliver on nights, weekends and holidays. Now, who can beat that?!

8. Change/Clean Filters

This life-hack tip applies to everything from changing the HVAC filters to cleaning the dryer screens to cleaning the dishwasher filter. Keeping screens clean or replacing them on schedule will help appliances run more efficiently and economically.