Gov. Braun extends Indiana gas tax suspension through October 6

Gov. Mike Braun has extended the suspension of Indiana’s Gasoline Usage Tax and Gasoline Excise Tax through October 6.

The extension is part of a declared state energy emergency that took effect August 7, under which both gas taxes have been suspended in all 92 counties on a series of consecutive, monthly extensions.

The energy emergency declaration gives the governor’s office up to 120 days of authority to continue the suspensions, and Braun’s office said he will reevaluate again in 30 days to decide whether to extend it further.

Independent tracking from AAA and GasBuddy has repeatedly found Indiana with the lowest average gas prices of any state in the country since the tax suspensions began, running tens of cents below the national average through much of 2026.

“Affordability is my top priority, and my gas tax suspensions are delivering the cheapest gas in America for Hoosiers,” Braun said in a statement. “I’m keeping those savings going for Hoosier families. My recommended budget will tap our reserves to keep state and local infrastructure projects fully funded.”

Braun’s office said the state plans to draw on its reserves to offset the revenue lost from the suspended gas taxes, in order to keep local governments and the Indiana Department of Transportation’s highway fund fully funded for fiscal year 2027 projects and maintenance. Braun’s office said it has reached an agreement with House and Senate fiscal leadership to prioritize using reserve funds to replace that lost revenue during the 2027 budget session. The state’s reserve balance is currently projected to exceed $5 billion.

Braun first suspended the Gasoline Usage Tax in April and expanded the suspension in May to include the Gasoline Excise Tax as well.