Indiana Suspends 7% Gas Tax for 30 Days

Indiana Governor Mike Braun announced on Wednesday a 30-day suspension of the state's 7 percent gasoline use tax, making Indiana the second U.S. state to implement such a measure amid surging fuel prices linked to the ongoing U.S.-Israeli conflict with Iran. The move, effective immediately, aims to provide relief to residents facing higher costs at the pump, with Braun indicating the suspension could be extended based on developments in the Middle East.

Braun, a Republican, issued an emergency declaration to enact the policy, which targets only the variable gasoline use tax and leaves the fixed 36 cents per gallon gas tax unchanged. For April, the use tax equates to about 17 cents per gallon, based on statewide average prices from mid-February to mid-March. "I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices," Braun said during a press conference. "Affordability is my top priority." He emphasized that state officials would monitor gas stations to ensure the savings reach consumers directly and urged retailers to pass on the reductions.

To prevent exploitation, Braun called on Indiana Attorney General Todd Rokita, also a...