1, bringing the total diesel tax to 27 cents per gallon. The second four cents per-gallon hike on July 1 brings the tax to a total of 31 cents per gallon, according to the legislation . New Jersey joins Indiana, Montana, South Carolina, and Tennessee which are increasing diesel fuel taxes on July 1. The diesel fuel tax hike is part of the same legislation which increased gasoline taxes by 23 cents per-gallon on Nov. 1. Until then, New Jersey had the second-lowest gas tax in the nation. While gas prices increased last November, reflecting the tax increase, weak crude oil markets have given drivers some relief as gas prices were lower in June than they were in January. "Like gasoline, there is a little luck in that diesel prices are #bulk diesel fuel delivery trending lower in the wholesale markets," said Tom Kloza, Oil Price Information Service global head of energy analysis. "But it's the product most likely to spike when winter approaches." That's because diesel fuel and heating oil are similar products. The state average price was $2.40 for gallon of diesel fuel on Friday, down from $2.48 in May and $ 2.19 a year ago, Kloza said. "It's very flat, but we paid $4.80 in June 2008, so it's a product that can go ballistic," he said. Larry Higgs may be reached at firstname.lastname@example.org .
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