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Indiana Governor Weighs Second Extension of Gas Tax Holiday

Keeping state fuel taxes paused would lower pump prices, forcing decisions on how to replace millions in lost road funding.

Overview

  • Gov. Mike Braun is publicly weighing another pause to Indiana's fuel taxes and has said he will make a final decision next week.
  • The governor earlier suspended a monthly 7% gas-usage tax and the 36¢ per-gallon excise tax, measures that together cut pump prices by about $0.59 per gallon.
  • Price trackers show Indiana now among the cheapest states for gas and drivers are seeing immediate savings, while GasBuddy estimates the state is losing roughly $5 million in revenue each day because of the pause.
  • State law limits the governor to 30-day tax suspensions without legislative approval, so any multi-month relief would require the Indiana General Assembly to act or officials to use reserves such as the Rainy Day Fund.
  • The decision balances short-term consumer relief against concrete risks to road and infrastructure funding and could pressure lawmakers to convene or identify offsets that would affect future budgets and projects.