Indianapolis, Indiana – Indiana drivers will move from one gas-tax suspension straight into another, extending a summer of lower prices at the pump without a break in relief.
Gov. Mike Braun declared a new statewide energy emergency that will take effect Aug. 7, immediately after the current emergency expires. The order suspends both Indiana’s Gasoline Usage Tax and Gasoline Excise Tax through Sept. 5 in all 92 counties.
Braun said the new declaration is based on changing global conditions that are placing unusual pressure on fuel prices. Recent disruptions include maritime drone fighting near the Black Sea and Kerch Strait as the Russia-Ukraine conflict escalates, along with Canadian wildfires affecting the Alberta Oil Sands Region.
“New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes,” Braun said. “Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer. I’m keeping those savings going for Hoosier families.”
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The governor first suspended the Gasoline Usage Tax in April. In May, he expanded the action to include the state’s Gasoline Excise Tax. The consecutive emergency declarations mean motorists will continue receiving the relief through early September rather than seeing both taxes return on Aug. 7.
Braun plans to review market conditions again within 30 days to decide whether another suspension is needed. The new emergency declaration provides a 120-day period during which the administration may act.
Suspending the taxes reduces revenue normally directed toward road construction and maintenance. Braun said his administration intends to protect those projects by using available state reserves and administrative authority to replace the lost funding.
The governor has reached an agreement with fiscal leaders in the Indiana House and Senate to prioritize reserve funds during the 2027 budget session. Indiana’s reserve balance is currently projected to exceed $5 billion. Braun said the plan would allow the Indiana Department of Transportation to continue all scheduled fiscal year 2027 maintenance and highway projects without interruption while also making local governments whole.
Attorney General Todd Rokita said Indiana law does not prevent the governor from declaring separate emergencies based on different circumstances.
“It is within the Governor’s authority to give Hoosiers temporary and much needed relief at the pump based upon changed conditions,” Rokita said, while also calling on lawmakers to update the state’s emergency powers law.
For now, Hoosier families will receive another month of tax relief as global energy disruptions continue to test household budgets.
