Indiana drivers will experience continued relief at gas pumps after Governor Mike Braun announced a gas tax holiday in a recent news conference in Indianapolis. This marks the sixth month of respite for residents across all 92 counties.
“Keeping these taxes suspended will leave more money in the pockets of Hoosiers,” stated Braun, emphasizing affordability as a pressing issue. Diesel prices were noted at $6.75 per gallon at a Speedway in Munster, double the cost from the previous year.
Braun declared the suspension of both usage and excise taxes through November 4. Significantly, he also mentioned the suspension of restrictions on dyed diesel for farmers, enabling its use for any farm activity. Dyed diesel is typically tinted for distinction and intended for off-road use.
“Farming is a challenging occupation,” Braun commented, noting market price increases for soybeans and corn, offset by rising diesel costs. Diesel prices have surged in Indiana and across the nation due to the impacts of international conflicts, such as the Iran war.
Indiana’s average diesel price stood at $6.84 per gallon compared to $3.69 a year ago, based on AAA data. Previous actions by Braun, such as tax suspensions since April and May, were met with less severe diesel price issues, according to Braun.
“It’s going to help farmers in a big way, and it’ll take very little away from our roads and bridges revenues,” Braun added.
In a news release, Braun linked the renewal to global oil supply disruptions, including Houthi drone attacks in Saudi Arabia affecting a major pipeline and military advances in Yemen, along with the Russia-Ukraine war impacting oil refinement.
State Board of Finance agreed to reimburse approximately $139 million to local governments for losses in road tax revenue during the gas tax holiday. Additionally, Indiana plans to distribute $46.2 million across cities, towns, and counties.
Phil GiaQuinta, Indiana House Democratic Leader, supported Braun’s diesel relief decision but labeled it a “small, temporary relief” amidst rising farmer costs, citing bad federal agricultural policy and tariff losses.
Gas prices in Indiana were reported to be significantly lower than neighboring states. At various locations like Meijer in Merrillville and a Mobil station in Hammond, prices ranged from $3.17 to $3.99 per gallon, while neighboring states showed higher costs.