When Tradeoffs Don’t Matter

Yesterday, New Jersey proclaimed that it was lifting the ban on self-service gasoline stations. Then, continuing, “We encourage New Jerseyans to familiarize themselves with gas pumps as this change is in effect immediately, April 1, 2026.”

April Fools!!

At first panicking and then realizing it was an April Fools prank, I was relieved. Like many of my neighbors, we like pulling up to a gas tank and just asking the attendant to fill it up.

Full Service Gasoline Stations

Shaded red, New Jersey is the only full service state for dispensing gasoline. Until 2023, Oregon was also a full service state but then they lifted the ban. Still, shown by the blue sections of the map, there was some full service:

In addition, the city of Huntington, New York is a full service gas stop in the middle of a self-service state.

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 was said to have protected the consumer. Really though, it was about preventing a station owner from charging 18.9 cents after asking drivers to pump their own gas. Responding, the legislature passed the 1949 law.

I and many other New Jerseyites like our law. Some though suggest the result is a higher price.

So let’s take a look.

Gasoline Price Components

The price of crude represents close to half (below) of the total we pay for a gallon of gas. Consequently, we can ask if self-serve can have a consequential impact:

Gasoline Prices

In addition, New Jersey’s prices are not among the highest. Yes, Gulf states like Texas pay less than states along the mid-Atlantic Coast. But for all of us, prices are skyrocketing.  In just one month, at $2.98 on February 26th, they have gone up by more than $1:

Gasoline Taxes

At 70.9 cents per gallon, California remains the U.S. high for state gasoline fees and taxes while Alaska’s 8.95 cents is the low. As for New Jersey, it is #8 with 44.95 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: Tradeoffs

In 1960, New Jersey’s full service was the nationwide norm as just 8% of all stations offered self-service. However, by 1992, most U.S. gas stations switched. With New Jersey the holdout, we can ask the cost (defined as the sacrificed alternative) and benefit.

The cost of full service stations first takes us to price. One researcher, looking at Oregon’s gas prices with a self-service ban and then without one, saw prices fall by an average of 4.4 cents a gallon. Some also suggest that New Jersey gasoline stations face worker shortages with few willing to accept minimum wage. And finally, advocates say we sacrifice convenience and speed with full service.

But, as former NJ Governor Phil Murphy explained, self-service would be political suicide. A 2022 Rutgers poll indicated that almost 75% of NJ residents wanted to retain full service.

I guess the tradeoffs don’t matter. Like me, we want full service.

My sources and more: For starters, we needed to see the pro/con debate here and here. Then, From there, we returned to some NJ self service history and comparing prices through the numbers at EIA and the Tax Foundation.