If you’re operating in the petroleum distribution space in New Jersey, few things matter more to your bottom line than understanding the Petroleum Gross Receipts Tax (PGR Tax). Whether you’re a seasoned wholesaler or a new fuel hauler entering the Garden State market, compliance with PGR requirements is not optional—and mistakes can be costly.
This guide offers a practical overview of the tax, key compliance insights, and red flags that could trigger an audit.
What Is the Petroleum Gross Receipts Tax (PGR)?
The New Jersey PGR Tax is a tax on the first sale of petroleum products in the state. It applies to both gasoline and diesel, along with other petroleum-based fuels and lubricants. The PGR is not a retail tax—it’s assessed upstream on wholesalers and distributors when fuel first enters the New Jersey stream of commerce.
Current PGR Tax Rates (as of 2025)
– Gasoline:
– Petroleum Products Gross Receipts Tax: 12.85¢ per gallon
– Motor Fuels Tax: 10.5¢ per gallon
– Total: 23.35¢ per gallon
– Diesel:
– Petroleum Products Gross Receipts Tax: 13.5¢ per gallon
– Motor Fuels Tax: 13.5¢ per gallon
– Total: 27¢ per gallon
Who Is Responsible?
The first person or entity to sell petroleum products for consumption in New Jersey is liable. That typically includes:
– Fuel importers
– Terminal operators
– Distributors with out-of-state supply
Retail gas stations are not directly responsible for the PGR, but the cost is often passed down in pricing.
Compliance Tips for Wholesalers & Distributors
1. Register with the NJ Division of Taxation – You must be licensed as a PGR taxpayer and file monthly returns (Form PPT-1).
2. Keep Detailed Records – Maintain bills of lading, tax-paid invoices, and inventory reports for at least four years.
3. Verify Exemptions Carefully – Documentation for exempt sales must be exact.
4. Reconcile Terminal vs. Delivered Volumes – Discrepancies can trigger audits.
Audit Red Flags
– Missing or inconsistent Bills of Lading
– Failure to report exempt sales correctly
– Unregistered suppliers or unlicensed haulers
– Volume discrepancies between NJ and neighboring states (e.g., PA, NY)
Final Thoughts
The PGR Tax may seem like just another regulatory burden—but understanding it is critical to running a profitable and compliant petroleum distribution business in New Jersey. At Ross Enterprises, we specialize in helping retailers and wholesalers navigate these complexities with confidence.
Need help managing your fuel supply chain or ensuring compliance? Contact us for expert support.