Gov. Mike Braun is extending Indiana’s gas tax holiday for a second time, keeping the suspension of two state taxes on gasoline in place through July 7.
The current suspension had been set to expire June 7. Braun’s order continues the freeze on both the 7% Gasoline Usage Tax and the 36-cent-per-gallon Gasoline Excise Tax. The Governor’s office says the two taxes together amount to more than 62 cents per gallon, with the usage tax alone calculated at 26.5 cents for June.
“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.”
The Governor’s office pointed to AAA’s state-by-state gas price ranking, which it said places Indiana first nationally at $3.585 for a gallon of regular.
Braun is acting under Indiana’s energy emergency statute rather than a disaster declaration. The administration notes that after COVID-19, the General Assembly capped the Governor’s emergency powers during a statewide disaster declaration at 60 days but left the separate energy emergency authority — and its 120-day maximum — unchanged. The administration says the April energy emergency has not been rescinded, which it argues allows Braun to continue the relief within that window without calling lawmakers into a special session.
Braun first announced a 30-day suspension of the Gasoline Usage Tax on April 8. On May 6, he extended that relief and added the excise tax suspension, roughly doubling the savings. Wednesday’s action continues both.
Legislative Republican leaders backed the move while flagging the road-funding question that lurks beneath it. The taxes paid at the pump are dedicated to maintaining and building state and local roads.
House Speaker Todd Huston (R-Fishers) said House Republicans support the extension to keep costs low at the pump and noted state law permits energy emergencies to run up to 120 days without legislative action. “We will continue to monitor gas prices as we go forward to ensure affordability,” Huston said. He added that lawmakers will examine existing resources heading into the next budget session to ensure adequate road funding.
Senate President Pro Tem Rodric Bray (R-Martinsville) struck a similar note, saying his caucus continues to hear affordability concerns from constituents even as Indiana ranks among the lowest cost-of-living states in the country. Bray said the suspension provides “some short-term relief for Hoosiers” but cautioned that because the revenue funds road upkeep, the state “must continue to be good stewards” and find efficiencies to keep infrastructure funded.
The next state budget is written in the 2027 long legislative session, where the durability of the gas tax holiday — and how the state backfills the lost road revenue — is likely to surface as a live issue. For now, the 120-day clock on the April energy emergency limits how long Braun can extend the relief on his own.
