UPDATE (October 1, 2026):
INDIANAPOLIS, Ind. (ADAMS) – Indiana Governor Mike Braun has renewed the state’s gas tax suspension for another 30 days.
Braun also signed an order allowing farmers and timber harvesters to use off-road diesel in their trucks this year, with that fuel not subject to taxes. Indiana continues to have the lowest gas prices in the U.S. due to the gas tax suspension. AAA says the current statewide average price in Indiana is $3.83 per gallon, while the national average is $4.43.
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UPDATE (September 21, 2026):
Gas prices are climbing across Indiana.
AAA says the statewide average reached just over $4 a gallon Saturday, up nearly 50 cents from a week earlier.
Despite the increase, Indiana remains below the national average. Diesel prices are also rising, with the statewide average above $6.70 per gallon.
Get more here
UPDATE (September 17, 2026):
The pain at the pump is increasing for Americans. The national average for a regular gallon of gas is approximately $4.43, according to data from AAA.
Data also shows record-high diesel prices, which are directly driving up inflation.
Experts say the increases are being driven by economic uncertainty created by the Iran war.
Prices for us actual Hoosiers are a bit more bearable now in the sixth month of the state suspending taxes. Despite that, prices have also increased in northeast Indiana.
The average price for regular gas in Indiana is $3.75 a gallon, according to AAA.
It is currently unclear if Governor Mike Braun will extend the tax suspension in October.
UPDATE (September 4, 2026):
INDIANAPOLIS, Ind. (ADAMS) – Indiana Governor Mike Braun is extending the state’s gas tax holiday. Braun extended the holiday Thursday for the sixth straight month.
It went into effect in April after the U.S. and Israel started a war with Iran, spiking oil and gas prices. The gas tax holiday is now in effect until October 6th and will save drivers 60 cents a gallon.
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UPDATE (August 6, 2026):
INDIANAPOLIS, Ind. (ADAMS) – Governor Mike Braun is extending Indiana’s gas tax holiday through September 5th.
Braun announced Wednesday that a new energy emergency order will keep the state’s gas taxes suspended. The governor says the move is intended to help Hoosiers as fuel prices remain high. Braun says the suspension will be reviewed again in 30 days.
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UPDATE (July 10, 2026):
INDIANAPOLIS, Ind. (ADAMS) – The gas tax holiday in Indiana will result in losses of a combined $533 million in tax revenue for the state and local governments.
Drivers have been saving around 61 cents on every gallon of gas they buy, and the holiday will end on August 6th.
Gas taxes pay for road work, and Governor Braun’s administration says local governments will be reimbursed for the money they are losing. Braun says the state has the reserves that can handle the cost. The gas tax holiday resulted in Hoosiers having the lowest gas price in the country.
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ORIGINAL STORY:
INDIANAPOLIS, Ind. (ADAMS) – The state of Indiana will reimburse local governments for the gas tax revenue they have lost during the state’s fuel tax pause that’s been in effect since May.
State Budget Director Chad Ranney will make the formal request to transfer money from the State Highway Fund for April and May to the Board of Finance on July 21st, and distributions will be made within five to seven business days after the transfer is approved.
Hoosiers have been saving nearly 63 cents a gallon with the tax holiday that was put in place due to skyrocketing prices after the U.S. and Israel started a war with Iran.
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