Overview
- The state will keep both the 7% Gasoline Usage Tax and the $0.36-per-gallon excise tax suspended through the end of July, delivering roughly $0.62 in savings per gallon at the pump.
- Braun pledged that state surpluses will fully reimburse local governments for lost gas-tax revenue and that INDOT and local agencies may tap reserves and cash flows to avoid cancelling projects.
- Officials estimate the suspension costs about $50 million per month from the usage tax and $90 million per month from the excise tax, and they say strong revenue performance makes short-term backfill possible.
- The move is authorized under Indiana’s energy emergency statute, which limits executive suspension time to 120 days and means any longer-term tax change would require legislative action or other budget offsets.
- Drivers get immediate relief and Indiana now has one of the nation’s lowest average prices, but the pause raises questions about sustainable road funding and whether lawmakers will provide a long-term fix.