Indiana extends gas tax suspension: 'Cheapest gas in the country'

INDIANAPOLIS - Indiana Gov. Mike Braun announced an extension of the state's gas tax holiday through July 7.

The move extends the suspension of Indiana's 7% Gasoline Usage Tax and the state's Gasoline Excise Tax for a second time. The current suspension had been scheduled to expire June 7.

Braun said the extension is part of an effort to keep costs down for Indiana families.

"Indiana has the cheapest gas in the country because we are using every tool in the toolbox to save Hoosier families money," Braun said in a statement. "Affordability is my number one priority."

By the numbers:

According to AAA, Indiana currently has the nation's lowest average gas price, with regular gasoline averaging $3.585 per gallon.

State officials said drivers will save more than 62 cents per gallon while both taxes remain suspended. For June, the Gasoline Usage Tax would otherwise total 26.5 cents per gallon, while the Gasoline Excise Tax stands at 36 cents per gallon.

Dig deeper:

The extension is being carried out under Indiana's energy emergency statute. State officials said an energy emergency declared in April remains in effect and allows the governor to continue related relief measures for up to 120 days.

Indiana lawmakers limited a governor's emergency powers tied to statewide disaster declarations to 60 days following the COVID-19 pandemic. However, state officials noted that energy emergencies operate under separate legal authority and retain a 120-day maximum duration.

Braun first suspended the Gasoline Usage Tax on April 8. He expanded the relief on May 6 by also suspending the Gasoline Excise Tax, more than doubling the savings available to motorists.

The latest extension means Indiana drivers will continue receiving the tax relief through at least early July.