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Gas tax holiday extended as Governor Braun issues new energy emergency

Image by IADE-Michoko from Pixabay

On Wednesday, Indiana Governor Mike Braun issued a statewide energy emergency and extended the state’s gas tax holiday for another 30 days.

“New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes,” Braun said. “Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer. I’m keeping those savings going for Hoosier families, and my recommended budget will tap our reserves to keep state and local infrastructure projects fully funded.”

The new energy emergency is prompted by new disruptions to global oil shipping lanes in recent weeks.

“These disruptions are due to the Russia-Ukraine conflict, escalating into maritime drone battles in the Black Sea/Kerch Strait and disruptions in the Alberta Oil Sands Region due to Canadian wildfires,” Braun said in a press conference.

The new energy emergency will take effect Friday, and it provides a 120-day window of authority. Both gas taxes will be suspended through September 5.

Attorney General Todd Rokita backed Braun’s authority to create a new energy emergency.

“Nothing in Indiana’s emergency powers statutes prohibits the governor from declaring separate emergencies based upon different factors,” Rokita said. “It is within the Governor’s authority to give Hoosiers temporary and much-needed relief at the pump based upon changed conditions.”

Braun said he has reached an agreement with House and Senate fiscal leadership to use reserve funds during next year’s budget session, covering money lost from the gas tax pause.

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1 comment

kskineal August 6, 2026 at 10:49 am

Under normal conditions, Indiana imposes two separate taxes on gasoline. However, following an emergency executive order by Governor Mike Braun, these are currently waived for motorists:
Tax Component Standard Rate (August 2026)
Current Status State Gasoline Excise Tax$0.37 per gallon
Suspended Gasoline Use Tax (Sales Tax)$0.219 per gallon
Suspended Total State Taxes$0.589 per gallon$0.00 (Suspended)

Thanks for not providing this basic information to the public
Send my check to the attached address

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