Note: This story has been updated with more information about America’s rising fuel costs in the wake of the Iranian ceasefire.
Gasoline in Indiana used to cost around $2.80 a gallon. On Wednesday, April 8, Hoosiers awoke to find unleaded fuel averaging $4.14 — about eight cents higher than the day before, and despite President Donald Trump announcing a ceasefire in the Iran War.
It isn’t known yet how soon relief will come at the pump.
U.S. Energy Information officials say prices could continue to rise for months even with the reopening of the Strait of Hormuz, an important waterway for the world’s oil supply disrupted by the conflict.
“Just as we had never before seen the strait close, we’ve never seen it reopen,” EIA Administrator Tristan Abbey said in an April 7 statement. “What exactly that looks like remains to be seen. Full restoration of flows will take months.”
How expensive is gasoline in Indianapolis on April 8, 2025?
Data from the American Automobile Association showed Indianapolis drivers were shelling out an average of $4.13 per gallon for regular fuel Wednesday.
While California motorists are currently paying the highest costs in the nation at $5.93 per gallon, the Hoosier State continued its trend of being more expensive to fuel up than neighboring states Ohio, Michigan and Kentucky.
Gov. Mike Braun to make ‘major gas tax’ announcement April 8
On Wednesday, Gov. Mike Braun signed an emergency declaration temporarily suspending the state’s gas usage tax, considered to be among the steepest in the nation.
Indiana drivers have been paying roughly 72 cents for every gallon of gas they buy, just in taxes, which include a state sales tax, state excise tax and a federal gas tax.
While both the federal and state excise tax will remain in place, Braun’s 30-day suspension of the 7% gas usage tax is expected to save Hoosiers $50 million, he said.
In a news release, Braun noted the state will be “patrolling the pumps” to monitor prices and ensure savings are passed directly to Hoosiers. He called on State Attorney General Todd Rokita to prosecute any retailers suspected of price gouging.
Why are gasoline prices so high?
Nationwide fuel prices continue to remain higher than average after the United States, along with Israel, launched missiles at Tehran on Feb. 28, starting the Iran war, a conflict that effectively choked off access to the Strait of Hormuz.
The 100-mile-long waterway connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Roughly a fifth of the the world’s oil and natural gas runs through the important channel.
What’s the latest on the Iran war?
On Easter Sunday, Trump issued a strongly-worded social media post where he called on Iran to “Open the (expletive) Strait, you crazy bastards, or you’ll be living in Hell.”
On Tuesday morning, the president issued a widely criticized threat to destroy Iran’s “whole civilization” unless it agreed to end the war Israel and the United States started. Later that evening, the three countries agreed to a two-week ceasefire and the opening of the Strait of Hormuz shipping channel.
Despite the announcement, U.S. gas prices ticked up two cents higher than where they were Tuesday to $4.16 per gallon on April 8.
National gasoline prices could begin to ease, but not soon
Patrick De Haan, head of petroleum analysis at Gas Buddy, predicted the price could fall below $4 within one or two weeks.
“Gas prices could start reversing nationally in 48 hours or so — by a few cents every day,” De Haan said in an X post. “Diesel prices may lag slightly — but where things stand now, diesel is NO longer likely to reach a record.”
IndyStar is keeping track of how gas prices have changed in Indiana since the beginning of March. Here’s where they stand as of April 8.
What are gas prices in Indiana as of April 8, 2026?
As of April 8, gas prices in Indiana averaged $4.137/gallon for regular fuel. The same fuel cost $2.798 on March 2, according to AAA. It had surpassed $4 a gallon by March 24.
Story continues after photo gallery.
The following cities in the Hoosier State recorded these average fuel costs on April:
Where is Indiana’s most expensive gas today?
As of April 8, Indiana’s most expensive fuel could be found in LaPorte County, where drivers are paying an average of $4.28 per gallon of regular gasoline. The cost Wednesday was about 11 cents higher than the national average.
Where is Indiana’s cheapest gas today?
The cheapest Indiana county for motorists Wednesday, April 8, according to AAA, could be found in Switzerland County, which averaged at $3.89/gallon of regular gasoline.
(Note: The cost of fuel changes daily. Visit GasPrices.aaa.com for the latest prices. Additional information about Indiana’s average fuel costs can be found at Fuelinsights.gasbuddy.com).
How high is the price of diesel in Indiana today?
Indiana’s average price of diesel Wednesday stood at $5.43 a gallon, per AAA. A year ago at this same, a gallon of diesel cost $3.66.
How expensive is crude oil today?
Brent crude oil prices were around $94 a barrel Wednesday morning. The price is expected to remain higher than average while the Strait of Hormuz remains virtually shut, in which 20% of the world’s oil flows through the strait.
USA TODAY journalists contributed. Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_.
John Tufts covers trending news for IndyStar and Midwest Connect. Send him a news tip at JTufts@Gannett.com. Find him on BlueSky at JohnWritesStuff.
This article originally appeared on Indianapolis Star: Indiana gasoline prices climb April 8 despite Iran War ceasefire
Reporting by John Tufts and Rachel Barber, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
