Gov. Mike Braun is extending his suspension of both the state’s gas usage and excise tax for another 30 days until Oct. 6.
Braun made the announcement on Thursday. It comes two days before the current 30-day suspension was set to expire and right before the Labor Day holiday.
Braun can continue the suspension because of the new energy emergency that went into effect Aug. 7, which set off a new 120-day window to pause both gas taxes.
At the time, the governor cited disruptions to global oil because of the ongoing conflict in Ukraine and wildfires in Canada. Braun initiated the first gas tax holiday in April, then in May added the state’s excise tax, attributing that energy emergency to the war with Iran.
Braun’s reasoning for extending the tax suspension again pointed to the ongoing conflict in Iran. He also emphasized the state’s ample reserve funding.
"Tapping our reserves is something that we can do, and do it with confidence that it's not going to impact road funding or other budgetary things," Braun said. "This is another example of how we do things that make affordability less of an issue for Hoosiers."
Braun said that Indiana's House and Senate leadership have agreed with the further extension and also remains committed to ensuring all local governments and road projects for the 2027 fiscal year continue to be funded.
The Indiana Board of Finance has already approved funding for some municipalities for their share of the suspension.
The governor's office said on Thursday that the state’s reserve balance is currently on track to be over $5 billion.
The suspensions have meant that the state has spent roughly half a billion dollars to lower costs at the pump so far — spending roughly $140 million each month that taxes are suspended.
The tax suspensions also mean that Indiana continues to have some of the lowest gas prices in the country, according to average prices gathered by AAA.
Braun said he will reevaluate whether or not to extend the suspension again around Oct. 6.
WFYI Government Reporter Benjamin Thorp contributed to this story.
Contact WFYI Government Reporter Caroline Beck at cbeck@wfyi.org
