As gas prices continue soaring, Gov. Mike Braun extended the suspension of Indiana’s sales gas tax Wednesday and also suspended the 36-cent excise tax on gas.
It’s a 12.4% per gallon savings, Braun said. Together, it would amount to a savings of 59 cents per gallon.
The 30-day suspension comes ahead of the Memorial Day holiday weekend, when many residents have travel plans.
“Hoosiers still need relief from high gas prices,” Braun said. He said the state’s economy is positioned to withstand the shortfall.
Braun suspended the 7% gas usage tax on April 8, a suspension also slated for 30 days. The state’s 36-cent-a-gallon excise tax remained in place during the first suspension, along with the federal gas tax. The suspension doesn’t affect diesel fuel.
Cutting the usage tax last month brought the cost per gallon down by just over 17 cents. At the time, Meijer in Portage sold gas for $4.29 a gallon while warehouse clubs Sam’s and Costco were at $3.84, according to Gasbuddy.
Braun didn’t blame President Donald Trump’s war in Iran for the higher pump prices. Instead, he said it’s a combination of the seasonal introduction of summer blend gasoline and “things that happened kind of between wholesalers and retailers.”
Recent polling shows 77% of Americans blame Trump’s U.S.-led Iran conflict for the gas pump surges. The polling cites 55% of Republicans hold Trump responsible for the increases.
The war and the closing of the Strait of Hormuz have disrupted supply chains and fractured oil availability globally.
The average price of gas per gallon in Indiana was $4.76 on Wednesday, per AAA’s state fuel tracker. A month ago, the average was $4.13 per gallon.
Today, the national average is $4.53 per gallon, according to AAA.
The funds lost in sales and excise taxes will impact state and local coffers. Excise tax collections fund counties, cities, towns and schools, as well as projects by the Indiana Department of Transportation.
The second suspension of the gas taxes is the last emergency declaration he can authorize, Braun said. To go beyond it would take action by the General Assembly, which isn’t in session.
State Sen. Gregory Porter, D-Indianapolis, criticized Braun for waiting to suspend the excise tax.
“Gas prices hit $4.99 here in Indy. Republicans, both state and federal, are responsible for this mess. Hoosiers shouldn’t suffer financially from their decisions,” Porter said in a statement.
Carole Carlson is a freelance reporter for the Post-Tribune.
