GOP Gov. Braun: 30-day suspension of gas tax in state

(L) Indiana Governor Mike Braun attends the National Governors Association Evening Dinner and Reception in the East Room of the White House on February 21, 2026 in Washington, DC. (Photo by Al Drago/Getty Images) / (Background) A fuel pump displays prices at a gas station on April 06, 2026 in Miami, Florida. (Photo by Joe Raedle/Getty Images)

Indiana GOP Governor Mike Braun announced a 30-day suspension of the 7% usage tax on fuel in Indiana on Wednesday.

“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices. Affordability is my top priority,” Braun (R-Ind.) said, according to a statement from the governor’s office.

At the end of 30-days, the suspension, which is based on Braun’s Wednesday emergency declaration, will be reviewed and could be extended if the emergency continues, the statement added.

Braun explained that the state will be monitoring prices to ensure that retailers are delivering the savings of the gas tax relief directly to consumers. He also called on the Indiana attorney general to enforce protections from retailers practicing price gouging.

Notably, this announcement does not pertain to the state excise tax or the federal gas tax, per the IndyStar.

This move follows a volatile weeks-long conflict in Iran that had effectively closed the Strait of Hormuz, a maritime artery through which roughly 20% of the world’s oil and liquefied natural gas flows.

While a ceasefire has since been announced between the U.S. and Iran, uncertainty over the truce — and reports that the Strait remains “not open” to commercial traffic, with Iran citing Israel’s actions — has kept global energy markets on edge.

As of Thursday, AAA reports that the U.S. national average had climbed to $4.17 per gallon, its highest point since 2022. While Indiana’s average has dipped slightly to $4.13 per gallon following the news of the tax suspension, local drivers are still feeling the squeeze compared to last month’s prices.

The situation is even more severe on the West Coast, where California has seen prices break records, currently averaging $5.93 per gallon.

Following President Donald Trump’s declaration of a ceasefire on Tuesday evening, oil prices have, overall, plummeted, though they still remain higher than pre-conflict levels.