Gov. Mike Braun on Wednesday extended Indiana’s gas tax holiday for another 30 days and expanded it to include the state’s gasoline excise tax, more than doubling the per-gallon savings Hoosiers will see at the pump as prices have surged to nearly $5 per gallon.
The governor’s action extends the April emergency energy declaration by an additional 30 days — the maximum allowed under state law without a special legislative session. The order continues the suspension of the 7% Gasoline Usage Tax, currently $0.23 per gallon for May, and adds a suspension of the $0.36-per-gallon Gasoline Excise Tax, the 2026 statutory rate.
Combined, the two suspensions total $0.59 per gallon and amount to roughly a 12.4% discount on the average price of gasoline in Indiana, according to the governor’s office.
“Making life more affordable for Hoosiers will always be my top priority,” Braun said in a statement. “Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month.”
Braun also announced he will increase the mileage reimbursement rate for state employees who use personal vehicles for work-related travel. His office said additional details on the new rate will be released once finalized.
The expanded suspension comes after gas hit $4.99 per gallon across Indiana last week, a price spike state and national observers have linked to instability in global energy markets tied to the ongoing U.S. conflict with Iran.
House Democratic Leader Phil GiaQuinta (D-Fort Wayne) welcomed the relief but said the governor’s action does not address the underlying cause of the price spike.
“I am grateful that Hoosiers will get relief at the pump for another 30 days,” GiaQuinta said in a statement. He noted that Rep. Gregory W. Porter (D-Indianapolis) had called for suspending both the sales tax and excise tax on gasoline last month.
GiaQuinta argued the governor should also use his political relationships in Washington to push for a resolution to the conflict driving prices upward.
“Gas was affordable until the president chose to escalate in Iran with no clear strategy, no defined goals and no exit plan,” GiaQuinta said. “That choice disrupted global energy markets, and Hoosiers are paying for it every time they fill up.”
GiaQuinta characterized the governor’s action as treating a symptom rather than the cause, saying the state-level relief, while welcome, “is putting a band-aid on a wound the White House created.”
The Democratic leader called on Braun and members of Indiana’s Republican congressional delegation to advocate for an end to the conflict, calling it “the single most effective action they could take today to bring down prices for Hoosiers in the long term, not just this month.”
Wednesday’s order represents the longest period Braun can suspend the gas taxes under his executive authority. Any further extension beyond the 30-day window would require action by the General Assembly through a special session.
