Indiana drivers will continue to see lower prices at the pump as Governor Mike Braun extended the state’s gas tax holiday through Oct. 5. The governor issued an executive order on Thursday that suspends the 7% usage tax on gasoline, a measure he has now employed five times since April and the second extension since declaring a statewide energy emergency in August.
Why the extension matters for Hoosier families
Braun said the decision was driven by “continued global oil shipping disruptions” that keep wholesale fuel costs high. By suspending the tax, the administration aims to pass savings directly to motorists, especially families still recovering from the severe weather that struck much of the state earlier this year.
“Today I extended the gas tax holiday, delivering another month of nation‑leading relief for Hoosiers from high gas prices,” Braun stated. He emphasized that the move aligns with the governor’s broader effort to protect Indiana households from volatile energy markets while the state works through its emergency authority.
How the tax holiday works
Indiana’s gasoline usage tax, in place since 2014, is normally recalculated each month based on average fuel prices. When the tax is active, the revenue funds local road and transportation projects across the state. Under the emergency declaration, Braun has a 120‑day window to continue the suspension without requiring legislative approval.
The governor has previously pledged that any lost revenue will be reimbursed to cities and counties, ensuring that local infrastructure projects are not left unfunded. This promise seeks to balance immediate consumer relief with the long‑term needs of Indiana’s transportation network.
Impact on local road funding
While the tax holiday eases the cost of gasoline for drivers, it temporarily reduces the stream of money that typically supports road maintenance, bridge repairs, and new construction. State officials have indicated that the reimbursement plan will be funded through other state resources, though details on the exact mechanism remain to be outlined.
Local officials in several counties have expressed support for the measure, noting that lower fuel costs help residents and businesses alike, especially those that rely on trucks and delivery vehicles. At the same time, some municipal leaders have asked for clearer timelines on when the reimbursed funds will be distributed.
Looking ahead
The gas tax holiday is set to expire on Oct. 5 unless further action is taken. Governor Braun retains the authority to extend the suspension again if global oil‑shipping issues persist, but any additional extensions would still need to fit within the 120‑day emergency window.
Indiana residents can expect the state to monitor fuel market conditions closely and to adjust policy as needed to keep pump prices affordable while safeguarding the funding needed for safe, well‑maintained roadways.
Original reporting: WLKY Louisville — read the source article.
