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Car News

Governor Christie Takes Further Actions to Bolster New Jersey’s Supply of Gasoline and Diesel Fuel

Trenton, NJ – Governor Christie authorized the use of dyed diesel fuel on state roads until November 20 and extended an emergency waiver that allows unlicensed fuel merchants to buy fuel from out-of-state suppliers to November 14. Both measures are designed to hasten the end of gasoline and diesel fuel shortages in New Jersey after Superstorm Sandy.

Diesel fuel is dyed if it is sold for off-road uses such as for generators or agricultural equipment. The state’s motor fuel tax is not levied on diesel used off-road, and dye is used to distinguish fuel subject to the tax from fuel that is not. Temporarily allowing the use of dyed diesel will boost supplies for truckers who are helping New Jersey’s economy get up to full speed,

Treasurer Andrew Sidamon-Eristoff said. “This is another prudent measure that will help New Jersey get past temporary fuel shortages caused by the storm,”

Treasurer Sidamon-Eristoff said. “Sandy’s continuing effects on fuel supplies and the economy justify temporarily exempting truckers from the heavy penalties of using dyed fuel for on-road uses.”

Fuel merchants also have asked for extension of the waiver on licensing for out-of-state fuel purchases. When the waiver wasn’t in effect, merchants not licensed to import fuel couldn’t legally buy gasoline and diesel fuel from out of state and import it. The waiver, originally set to expire today, Nov. 7, has helped ease storm-related fuel shortages by allowing all merchants temporarily to buy fuel from out of state for their New Jersey customers, Sidamon-Eristoff said.

Fuel merchants who buy fuel from out of state who aren’t currently licensed importers must document their purchases and pay required New Jersey taxes. Fuel merchants who import must fill out form MFA-12 available at the following link to register their purchases and calculate taxes: http://www.state.nj.us/treasury/taxation/pdf/other_forms/motorfuel/mfa12.pdf

Gasoline and diesel fuel supplies have tightened across the East Coast after the major pipelines and refineries in the Northeast shut down during Hurricane Sandy. While many fuel terminals and gas stations are back on-line, fuel shortages are continuing because of depleted reserves, damage to equipment and power outages in the hardest-hit areas.

Until December 1: • The State will not conduct dyed-fuel inspections • There will be no fines or penalties for using dyed fuel in on-road vehicles.

Sellers of dyed fuel must collect the state’s motor fuel taxes of 13.5 cents per gallon if the diesel will be used for on-road purposes. Report the sales on the appropriate tax return. End users who purchase fuel that has not been taxed must report the purchases on Form MFA-12 and pay the tax due no later than three days after the close of the crisis. All other taxes are still in effect.

Any questions can be addressed to the New Jersey Division of Taxation at (609) 633-8536, or sent to the e-mail address fuel.tax@treas.state.nj.us .







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