INDIANAPOLIS, IN (WTVB) – Indiana Governor Mike Braun says that he is exploring the legal flexibility under the state’s energy emergency law to potentially extend Indiana’s sweeping fuel tax suspension beyond its current June 7, expiration date.
Braun initially suspended the state’s 7% gas sales tax on April 8 and doubled down on May 6 by also waiving the 36-cent-per-gallon gasoline excise tax. This combined 59-cent-per-gallon “tax holiday” has provided an estimated 12.4% discount at the pump for Hoosier motorists struggling with inflation.
While state officials weigh the long-term impact on infrastructure funding, Braun plans to make a final decision during the first week of June regarding whether he can independently renew the emergency declaration for a third month without a special legislative session.
The aggressive tax relief has created a massive pricing disparity along the state line, prompting drivers in Branch County, to cross the border in droves to fuel up. Prices in Steuben County, Indiana, have plummeted to as low as $3.67 per gallon, making fuel more than a dollar cheaper than at stations just miles away in Coldwater and other border towns, where local averages hover closer to $4.74 per gallon.
Market analysts at GasBuddy confirm that nearly 85% of Indiana’s tax savings are being passed directly to consumers. This has created a vibrant interstate arbitrage effect, as Michigan Governor Gretchen Whitmer continues to resist a similar tax holiday over concerns regarding road-repair budgets, leaving state locked into some of the highest fuel costs in the nation.
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