INDIANAPOLIS (WLKI) - Indiana motorists will continue to see lower prices at the pump after Gov. Mike Braun announced Wednesday that the state's gas tax holiday will be extended through Sept. 5 under a new energy emergency declaration.
According to FOX59, the previous suspension of Indiana's gasoline excise tax and gasoline use tax was scheduled to expire at 11:59 p.m. Thursday. The expiration would have increased gas prices by an estimated 60 cents per gallon across the state.
Braun said ongoing disruptions to global energy distribution created new conditions that justify a separate emergency declaration, allowing the state to continue suspending the taxes.
"New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes," Braun said in a statement. "Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer. I'm keeping those savings going for Hoosier families, and my recommended budget will tap our reserves to keep state and local infrastructure projects fully funded."
According to FOX59, Braun said the new emergency declaration creates a new 120-day period of authority, although the current tax suspension will run through Sept. 5. The governor said he will reevaluate conditions in 30 days to determine whether another extension is warranted.
Indiana Attorney General Todd Rokita supported the governor's action, saying state law allows separate emergency declarations when new circumstances arise.
"Nothing in Indiana's emergency powers statutes prohibit the governor from declaring separate emergencies based upon different factors," Rokita said. "It is within the Governor's authority to give Hoosiers temporary and much-needed relief at the pump based upon changed conditions."
The extension comes as fuel prices remain elevated nationwide because of ongoing conflict involving Iran and concerns about global oil supplies.
Patrick De Haan, head of petroleum analysis at GasBuddy, told FOX59 the national average gasoline price has climbed above $4 per gallon and could continue rising if disruptions to shipping through the Strait of Hormuz persist.
According to AAA, Indiana currently has the lowest average gasoline price in the nation, at approximately $3.56 per gallon, compared with the national average of about $4.08.
The tax holiday has raised concerns about lost revenue for road and infrastructure projects. Braun said he has reached an agreement with House and Senate fiscal leaders to recommend using state reserve funds during the 2027 budget process to replace revenue lost during the gas tax suspension.
The governor said Indiana's reserve balance is projected to exceed $5 billion.