Braun considering 2nd extension of Indiana's gas tax holiday

LOUISVILLE, Ky. (WDRB) — Indiana's gas tax freeze could be extended for a second time.

Hoosier drivers are saving at the pump after Gov. Mike Braun first suspended the 7% gas usage tax on April 8 for 30 days. It was extended for another 30 days on May 6.

By law, 30 days is the longest the governor can suspend the gas tax without a special legislative session.

Braun also suspended the state's gas excise tax. Indiana's gas usage tax for May is 23 cents a gallon, and the gas excise tax's current rate is 36 cents a gallon. Wednesday's extension brings a 12.4% discount to the pump for Hoosiers.

"Affordability is my top priority," Braun said in a post on X. "The aggressive actions that I've taken to lower gas prices are working."

While the governor indicates he will likely extend the gas tax holiday through early August, it would take away more road funding.

"I will look into that, and to me, we've been run well as a state," Braun told FOX 59 News. "The one issue we do have as a challenge is infrastructure. We're the Crossroads of America."

According to GasBuddy, the Hoosier state is currently losing out on $5 million daily because of the holiday, which is set to expire June 7.

Some lawmakers suggest the state could dip into its Rainy Day Fund next year to make up for the loss.

The gas tax holiday and suspension of the state's gas excise tax are saving Indiana drivers about 59 cents per gallon at the pump. According to AAA, Indiana currently has the cheapest gas in the U.S., averaging at $3.86 for a gallon of regular fuel. That's lower than the national average of roughly $4.46 as of Wednesday.

Braun plans to make a final decision on the issue next week.