(INDIANAPOLIS) -- Indiana Governor Mike Braun says he has not ruled out temporarily suspending the state's gas tax as fuel prices continue to rise.
Braun said the state could consider using tools such as a tax suspension if high prices continue longer than expected.
Braun said price increases are tied to the war involving Iran and concerns about oil supplies moving through the Strait of Hormuz. He said prices could drop once supply through that region stabilizes but added the state may need to act if increases persist.
According to AAA, Indiana's average gas price on March 9 was about $3.47 per gallon, compared with $2.87 per gallon in March 2025.
Indiana currently collects two primary fuel taxes. The gasoline use tax, tied to the statewide average price of fuel, is about 15.3 cents per gallon through March 2026. The state also charges a 36-cent-per-gallon excise tax, which is scheduled to increase to 37 cents in July.
Lawmakers previously debated suspending fuel taxes during the 2022 spike in gas prices but instead approved one-time taxpayer relief payments.
Braun said no decision has been made yet on whether Indiana will suspend any gas taxes.