Gov. Mike Braun will “likely” extend the gasoline sales tax suspension for another month, he told reporters April 28, particularly if prices continue to rise.
In an emergency declaration April 8, Braun suspended the state’s 7% gas sales tax for 30 days, saving Hoosiers 17.2 cents per gallon at the pump. But the relief has been limited as prices, fueled by an uncertain future in the ongoing conflict between the U.S. and Iran, continue to climb.
The average price per gallon statewide with the gas tax suspension is $3.992, according to the American Automobile Association, meaning the average cost would likely breach $4 again if the suspension were to lapse.
The gas tax suspension is set to expire May 8.
“But I’ll wait until just a few days before to make the decision,” Braun said.
The governor’s comments come as the national average for gas prices hits its highest level in four years. Peace talks to extend the ceasefire have so far been unsuccessful, though Iran is expected to provide an updated peace proposal to mediators in Pakistan soon, according to CNN, after President Donald Trump rejected an earlier proposal.
The current suspension on the gas sales tax does not include the gas excise tax or the federal gas tax. If Braun does not extend the suspension, Hoosiers will foot an even higher sales tax of 23.3 cents per gallon. That’s because the rate is recalculated monthly based on the statewide average of the previous two months.
Contact breaking politics reporter Marissa Meador at mmeador@indystar.com or find her on X at @marissa_meador.
This article originally appeared on Indianapolis Star: Gov. Mike Braun ‘likely’ to extend gas tax suspension as Iran war inflates prices
Reporting by Marissa Meador, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
