COLDWATER, MI (WTVB) – Drivers in Branch County and other southern Michigan border communities are flocking across the state line to Indiana to fuel up following Governor Mike Braun’s decision this week to suspend both the state’s 36-cent gasoline excise tax and its 23-cent gasoline use tax.
The combined suspension provides a total savings of roughly 59 cents per gallon for motorists. With gas prices in Branch County spiking as high as $4.99 per gallon last week due to regional refinery outages and global energy tensions, the 30-day “tax holiday” has made Indiana stations a magnet for those looking to shave significant costs off their commutes.
We found at least one station just across the state line selling regular unleaded for $3.95 per gallon, while the average Branch County price is at $4.72.
While Michigan Governor Gretchen Whitmer has declared a state of energy emergency to stabilize fuel markets, she has resisted similar tax suspensions, citing concerns over losing vital road repair funding. This policy divergence has created a noticeable price gap at the border, leaving Michigan retailers in towns like Coldwater and Sturgis to watch as local customers cross into Steuben and LaGrange counties for relief.
Indiana officials, meanwhile, have deployed investigators to monitor stations for potential price gouging, ensuring the tax breaks are passed directly to the surge of consumers arriving at the pumps.
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