Indiana drivers will benefit from ongoing fuel tax relief announced by Governor Mike Braun. For the sixth consecutive month, a gas tax holiday is in place across all 92 counties. Governor Braun emphasized the importance of this relief for Hoosiers during a news conference in Indianapolis, noting the rise in diesel prices.
The relief comes amid high diesel prices, reported at $6.75 per gallon at a Munster Speedway. These prices are nearly double from the previous year. The gas tax holiday, initially extended by Braun, covers both usage and excise taxes through November 4. Additionally, Braun has temporarily lifted restrictions on dyed diesel use, allowing it for all farming activities. Dyed diesel is typically designated for off-road purposes.
Governor Braun recognized the difficulties farmers face with rising costs. Diesel prices have surged in Indiana and across the country due, in part, to international conflicts like the Iran war. According to AAA, Indiana’s average diesel price has reached $6.84 per gallon, compared to $3.69 a year prior.
In the announcement, Braun referred to recent disruptions affecting global oil supplies, including drone attacks in Saudi Arabia that impacted key pipelines and military advances affecting oil shipments. The Russia-Ukraine war also pressures global refining capacities.
“We’re providing critical support to farmers by lifting these rules,” Braun said. “It achieves significant benefit without severely affecting road and bridge funds.”
State reimbursement plans are underway to offset revenue losses from the tax holiday. Since April, this strategy has assisted local governments financially. Recent statewide distributions amount to over $46 million in compensation for local road tax revenue losses.
Indiana House Democratic Leader Phil GiaQuinta supports the diesel relief but called it “small and temporary.” He pointed to challenges faced by farmers due to poor federal agricultural policies and trade issues, leading to increased fertilizer costs and farm bankruptcies.
Despite these challenges, Braun remains optimistic about Indiana’s competitive fuel pricing, noting that prices are generally lower than neighboring states. GasBuddy data indicates varied gas prices across the state, with the lowest recorded at $3.17 per gallon in Richmond.
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