Indiana keeps pump prices among nation’s lowest by tapping reserves to extend gas tax break

Governor Mike Braun announced an agreement with House and Senate leaders to fund an extended suspension of Indiana’s gas taxes by replacing lost revenue from the state’s reserve balance, an announcement made in Clarksville. The move, now in its sixth month, was credited by Braun to efficient state operations and strong revenues. Officials say the pause will preserve road project funding while the governor reevaluates the policy on Oct. 6. AAA reported national pump prices hit record highs for Labor Day weekend as Indiana’s average was about $3.45 a gallon Thursday, with Texas near $3.70.

The tax pause — first begun in April and expanded in May to cover additional excise charges — saves about 60 cents per gallon for Hoosiers, officials said. Local drivers interviewed in Indianapolis described the relief as meaningful for household budgets and commuting costs. Braun characterized the reserve use as fiscally manageable; legislative leaders agreed to the arrangement to ensure projects funded at existing levels, according to the announcement.

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