Rising fuel prices squeeze Indiana households and farmers; Braun extends gas-tax holiday through Oct. 5
Indiana gas prices averaged $3.92 and diesel $6.42 per gallon on Thursday, and Gov. Mike Braun extended the state gas-tax holiday through Oct. 5, 2026, while diesel remained taxable, economists say the spike is creating an “affordability crisis.”
Indiana drivers faced a jump at the pump as AAA reported the average price for a gallon of regular gas in Indiana at $3.92 on Thursday, Sept. 17, 2026, a 17-cent increase from the previous day. Gov. Mike Braun extended the state gas tax holiday through Oct. 5, 2026; Braun told WISH-TV diesel was excluded because it is “normally used by businesses.”
Andreas Hauskrecht, a clinical professor of business economics at the Indiana University Kelley School of Business, called the situation “an affordability crisis,” saying households will feel the effects in groceries and other consumer goods. He warned rising diesel costs—reported at $6.42 a gallon in Indiana on Sept. 17, 2026—hit farmers during harvest and will flow through to many final goods because most freight uses diesel-powered trucks.
BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.
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