Should More States Have Full Service Gasoline Stations?

Shown in red, New Jersey is the only full service state for dispensing gasoline. While the blue sections of Oregon allow self-serve, they also require full service:

Gasoline Prices

For the past 75 years, we in New Jersey have been prohibited from pumping our own gasoline. Dating back to 1949 when gas sold for 21.9 cents a gallon, the Retail Gasoline Dispensing Safety Act protected the consumer. Really though, one reporter says it was about a station owner that was able to charge a lower price–18.9 cents–because he asked drivers to pump their own gas. Reputedly responding to a gasoline retailers group, the legislature passed the 1949 law.

Whatever the reason, I and many other New Jerseyites like our law. It is a pleasure to pull up to a gas tank and just ask the attendant to fill it up. Some though suggest the result is a higher price.

So let’s take a look.

Gasoline Price Components

In 2024, the price of crude represented close to half (below) of the total we pay for a gallon of gas:

Gasoline Prices

But because the wholesale price of crude varies as do state gas taxes, Gulf states like Texas pay less than states along the mid-Atlantic Coast. However, looking at the national average, we can say that the trend is downward for everyone. At $3.15 for regular, gas prices have plunged from a mid-June 2022 high of $5.03:

Gasoline Taxes

At 68.1 cents per gallon, California remains the U.S. high for state gasoline fees and taxes while Alaska’s 8.95 cents is the low. At the same time, New Jersey, at #8 in the U.S. tax list, has 42.35 cents in taxes and fees.(There is also an 18.3 cents per gallon federal gas tax.)

You can see below how state gasoline tax rates tend to cluster. The Gulf states charge us the least:

Our Bottom Line: Price

Our key takeaway is the value of knowing a price. Only then can we gather the information that will let us judge the NJ full service law. With no definitive answer, I wind up suggesting adding full service stations.

My sources and more: For starters, we needed an update since Oregon no longer requires full service. From there, we returned to some NJ self service history and pondering how full service affects prices through the numbers at EIA, the Tax Foundation, and Gas Buddy.