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

LOUISVILLE, Ky. (WDRB) — Hoosiers can expect to keep saving at the pump after Gov. Mike Braun extended Indiana's gas tax holiday Wednesday for a second time.

The extension means both the gas usage tax and excise tax are now suspended through July 7. The current suspension was originally set to expire June 7.

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.

The suspension is expected to save Hoosiers about 62 cents per gallon.

According to AAA, Indiana has some of the cheapest gas prices in the country, averaging $3.58 a gallon.

"Indiana has the cheapest gas in the country because we are using every tool in the toolbox to save Hoosier families money," Braun said in a news release. "Affordability is my No. 1 priority."

While the gas tax holiday is helping Indiana drivers now, it's taking away from the state's road funding.

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

GasBuddy warns Indiana is losing out on $5 million a day right now because of the holiday. Some lawmakers suggest the state could dip into its Rainy Day Fund next year to make up for the loss.