Indiana Governor Mike Braun announced a temporary suspension of part of the state’s gasoline tax this week, aiming to provide short-term relief to residents as fuel prices climb sharply amid international tensions.
Speaking at a press conference on Wednesday, Braun said the state will pause the gasoline use tax for 30 days once the measure is implemented, which he expects to occur by late this week or early next week. The governor noted that he may consider extending the suspension but stopped short of making any commitment beyond the initial period.
The move comes as gas prices in Indiana have surged to more than $4.13 per gallon, an increase of over 67 cents in the past month and more than 90 cents compared to a year ago. The spike follows escalating conflict involving the United States, Israel, and Iran, which has disrupted global oil markets. In particular, Iran’s decision to restrict shipping through the Strait of Hormuz—through which roughly one-fifth of the world’s oil supply passes—has contributed to volatility in fuel prices.
Indiana’s gas tax consists of two components: a fixed excise tax of 36 cents per gallon, which will remain unchanged, and a gasoline use tax tied to 7 percent of the statewide average retail price. Based on earlier price averages, the use tax for April was set at just over 17 cents per gallon. Braun’s order temporarily suspends this variable portion.
In announcing the policy, Braun emphasized that the state will monitor compliance to ensure consumers benefit directly from the tax relief. He also called on Attorney General Todd Rokita to enforce protections against price gouging, urging gas retailers to pass the savings on to customers.
“The state will be watching the pumps to make sure savings are delivered to Hoosiers,” Braun said.
The announcement follows a recent dip in oil prices after former President Donald Trump stated that a two-week pause in hostilities with Iran had been reached, easing some pressure on global markets. West Texas Intermediate crude, a key U.S. benchmark, fell below $95 per barrel on Wednesday afternoon.
State lawmakers have reacted along party lines. House Minority Leader Phil GiaQuinta, a Democrat, expressed support for the tax suspension but criticized the timing of the decision. In a statement, he argued that state leadership acted too late and framed the move as a response to mounting economic pressure rather than proactive policy.
Despite differing perspectives, the temporary tax suspension reflects a broader effort by state officials to address rising fuel costs and their impact on household expenses. Whether the relief will be extended beyond the initial 30 days remains uncertain.