Top News

The Governor of Indiana, Mike Braun, has declared a 30-day temporary suspension of the 7% sales tax applied to gasoline, providing immediate assistance to residents experiencing rapidly increasing gas prices due to the ongoing Middle East conflict. The use tax, which could add 17-39 cents per gallon, will be temporarily suspended for 30 days starting today (May 8) on fuel purchases in Indiana. The Governor commented that this action is based on ongoing market conditions and conditions in the Middle East and he will likely extend this program if conditions warrant.

“I am declaring a gas tax holiday to provide Hoosiers relief from the pain at the pump from the rising price of gasoline. Affordability is my number one priority,” said the Governor. He has urged retailers to pass on all savings to their customers and will have the State Attorney General monitoring gasoline pricing at the pump to enforce anti-price gouging rules.

As announced, Indiana gasoline averages $4.14 per gallon, while the US averages $4.16; both have increased because of uncertainty in US-Iran relations and other worldwide political issues.

Consumer advocates welcomed the order, as did some state legislators; however, legislators in the Democratic Party are questioning the timing of the order, and are also calling for long-term solutions. Economists believe that although this order provides temporary relief to consumers, due to the current state budget and long-term infrastructure funding problems, the impact of this order will take time to be evaluated.

As this order was issued by means of an emergency declaration, it did not need state legislative approval. Additionally, state officials believe each gas station will have changed their price within 1 to 2 days after receipt of the order.