(INDIANAPOLIS) - Indiana drivers are getting temporary relief at the pump after Governor Mike Braun on Wednesday declared a 30-day gas tax holiday, suspending the state's 7 percent gasoline usage tax effective immediately.
The move comes as fuel prices across Indiana have climbed sharply, with the statewide average reaching about $4.13 per gallon, more than a dollar higher than earlier this year as global oil disruptions tied to the conflict involving Iran continue to pressure supply.
State officials estimate the suspension will save drivers roughly 17 cents per gallon, or about $2 on a typical fill-up, depending on the size of the vehicle's tank.
Braun said the tax break is meant to provide immediate affordability relief for Hoosiers and could be extended beyond 30 days if global market conditions remain unstable.
The governor also said the state will be "patrolling the pumps" to ensure gasoline retailers pass the full tax savings directly on to consumers instead of absorbing the difference into pricing. Indiana Attorney General Todd Rokita's office is also expected to monitor for potential price gouging during the suspension period.
Importantly, the emergency order does not suspend Indiana's fixed gasoline excise tax, which remains in place. Only the monthly 7 percent usage tax portion is being paused, meaning drivers will still continue paying part of the state's fuel tax structure.
The decision makes Indiana one of the first states in the country to enact a temporary gas tax suspension in response to the latest fuel price spike, with state leaders framing the move as an emergency affordability measure tied directly to international energy instability.