Indiana Governor Mike Braun has extended the state’s gas tax holiday for an additional 30 days, with the possibility of continuing the suspension for up to 120 days amid ongoing energy market disruptions. The extension, announced Wednesday, responds to new challenges affecting global oil supply, including escalating conflict-related tensions in the Black Sea and Kerch Strait, as well as wildfires in Canada’s Alberta Oil Sands region.
Braun initially declared an energy emergency in April following increased gasoline prices triggered by military actions involving the United States and Israel against Iran, which affected shipping lanes around the Strait of Hormuz. The latest declaration draws on distinct causes—specifically, the intensifying conflict between Russia and Ukraine and environmental disruptions in Canada—allowing Braun under state law to renew the emergency declaration anew. He will reassess the situation every 30 days and decide whether to extend the holiday further.
Attorney General Todd Rokita stated that the state’s emergency powers statutes permit separate declarations based on varying factors and expressed support for the governor’s actions, while suggesting the legislature update the law to better facilitate such measures in the future.
The current gas tax holiday is set to begin August 7 and run through September 5. Since the initial suspension in April, Indiana has waived both the gasoline usage tax and the gasoline excise tax, resulting in a projected revenue shortfall of approximately $610 million by the end of this extension. Previously, Braun noted that the monthly suspension of the usage tax results in a $50 million revenue loss, with the excise tax suspension accounting for another $90 million monthly deficit.
To mitigate funding impacts on infrastructure projects, Braun plans to utilize the state’s reserves—which exceed $5 billion—and work with the State Board of Finance to ensure that local governments continue to receive necessary support. He also indicated that he will collaborate with the legislature in the 2027 session to replenish lost revenues and address long-term transportation funding, last significantly revisited in 2017.
State legislative leaders expressed support for Braun’s continuation of the gas tax holiday, emphasizing the need to balance immediate relief for consumers with the importance of maintaining road maintenance and improvement programs. Indiana House Speaker Todd Huston said lawmakers intend to identify resources to sustain infrastructure investments despite the tax suspension. Similarly, State Sen. Ryan Mishler and State Rep. Jim Pressel highlighted ongoing efforts to prioritize transportation funding in upcoming budget discussions.
Some Democratic lawmakers and party officials welcomed the relief the holiday provides to consumers but criticized the broader geopolitical context. State Rep. Gregory Porter and State Rep. Cherrish Pryor called for federal action to end the conflict involving Iran, characterizing the state’s continued tax suspension as an imperfect measure that cannot replace a resolution to international tensions. Indiana Democratic Party Chairwoman Karen Tallian accused Braun of using the extension to shield federal policy, arguing that the governor is citing successive international crises to justify prolonged emergency declarations that strain state finances.
The gas tax holiday represents an immediate effort by Indiana’s government to alleviate high fuel costs for residents amid ongoing global uncertainties affecting energy markets, though challenges remain in balancing fiscal impacts with infrastructure needs.