Indiana Governor Suspends Fuel Use Tax Amid Rising Prices

Governor Mike Braun of Indiana, a Republican, announced on Wednesday a temporary 30-day suspension of the state’s 7% fuel use tax to help alleviate the financial strain on residents caused by increasing fuel costs.

“I am declaring a gas tax exemption to relieve Hoosiers of the pain at the pump caused by soaring gas prices. Affordability is my top priority,” Braun stated from his office.

This suspension, part of Braun’s declaration of a state of emergency, will be evaluated after the 30 days are up and could potentially be extended if necessary.

Braun noted that the state plans to keep an eye on fuel prices, ensuring that consumers benefit from the lowered taxes and called for stronger measures to protect against price gouging.

It’s important to mention that this decision does not affect state sales tax or federal gasoline taxes.

The announcement comes in light of ongoing tensions with Iran, which have significantly disrupted oil supplies, especially through the vital Strait of Hormuz—responsible for about 20% of the world’s oil and natural gas shipments.

A ceasefire has been called between the U.S. and Iran, but uncertainties about the situation persist, with reports indicating the strait is still not fully open to commercial shipping, linked to actions involving Israel.

As of Thursday, AAA reported that the national average gas price in the U.S. reached $4.17 per gallon, the highest in two years. In Indiana, prices have slightly decreased to $4.13 per gallon following the tax suspension, yet many drivers are still feeling the pinch compared to last month.

Meanwhile, the West Coast is experiencing more severe conditions, with California’s prices averaging a record $5.93 per gallon.

Although oil prices have declined sharply after President Trump announced a ceasefire on Tuesday night, they remain above levels seen before the conflict began.