Indiana Extends Gas Tax Holiday, Offers Diesel Relief
Indiana drivers will experience continued relief at the gas pumps as Governor Mike Braun announced the extension of a gas tax holiday for the sixth consecutive month. Addressing the press in Indianapolis, Braun stated, “This relief will continue without interruption again in all 92 counties.” He emphasized the importance of this measure by pointing out that suspending these taxes would put more money into the pockets of Hoosiers, tackling the real issue of affordability.
On Wednesday, diesel prices reached $6.75 per gallon at a Speedway location on Ridge Road in Munster, nearly double the price from the previous year. The governor declared the suspension of usage and excise taxes through November 4. Additionally, Braun, for the first time, lifted restrictions on dyed diesel, allowing farmers to use it for any agricultural activity. Dyed diesel is specially marked, usually red, identifying it for specific or off-road uses and exempt from certain taxes.
“Farming is the hardest occupation out there,” Braun noted, highlighting the unpredictable nature of agriculture, with weather being a significant factor. He acknowledged that although the prices for soybeans and corn increased slightly, those gains are offset by rising costs for diesel used in farming machinery.
Diesel prices have surged across the state and the country over the past year due to global conflicts, particularly the Iran war. The average diesel price in Indiana stood at $6.84 per gallon on Wednesday, compared to $3.69 a year ago, according to AAA data. Braun noted in the past that when the gas tax holiday was initially implemented, diesel price issues weren’t as critical.
Braun explained that suspending diesel rules would vastly benefit farmers with minimal impact on state road and bridge revenues. According to a news release, Braun attributed ongoing international disruptions, such as Houthi drone attacks in Saudi Arabia that disrupted 7% of the global oil supply, as factors for extending the tax holiday. He also mentioned the conflict between Russia and Ukraine, which has affected Russia’s refining capabilities significantly.
Indiana House Democratic Leader Phil GiaQuinta expressed his support for diesel relief, though he characterized it as “small, temporary relief.” He stressed the adverse effects of bad federal agricultural policies on Indiana farmers, leading to significant financial losses and increased costs.
According to Post-Tribune archives, the State Board of Finance has agreed to reimburse roughly $139 million for July’s road tax revenue losses. The State Comptroller’s office confirmed plans to distribute nearly $46.2 million to cities and counties across Indiana as part of the third reimbursement since April. Braun also mentioned seeking approval to utilize the state’s $4 billion surplus to mitigate losses.
Gas prices in Indiana remain relatively lower compared to national averages. Braun pointed out that neighboring states have higher prices, which places Indiana beneficially near $3.75 per gallon, according to GasBuddy. In contrast, gas prices in neighboring states like Michigan and Illinois have been recorded at $4.68 and $4.74 per gallon, respectively.