Gov. Mike Braun extended the suspension of state taxes on gasoline Thursday, giving motorists a reprieve on high pump prices for the fifth straight month.
The two taxes, usage and excise, will remain suspended until Oct. 6, Braun said in a press briefing in Clarksville.
Braun is tapping into the state’s $5 billion in reserves, created in part from the 1998 tobacco court settlement. The state receives about $122 million a year from the tobacco settlement as long as tobacco manufactures sell cigarettes in the state.
Revenue for state and local road projects comes from state gas taxes.
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A release from Braun’s office said funding will not be interrupted for 2027 fiscal year road projects and maintenance.
Braun reached an agreement with House and Senate fiscal leaders to prioritize the use of funds available from the reserve balance during the 2027 budget session to replace lost revenue from the gas tax holiday.
“Tapping our reserves is something we can do with confidence,” Braun said during the briefing. “Hoosiers have had the lowest gas prices since April. It makes it easier to make ends meet.”
Braun pointed out the savings come as Northwest Indiana and central Indiana residents recover from the storm damage and flooding from the Aug. 11 storm as 100 mph winds pummeled Gary, Portage and other areas.
“It’s the worst weather event we’ve confronted in at least 100 years,” said Braun, who’s visited Northwest Indiana twice in recent weeks to witness the damage.
“As Hoosiers recovered from severe weather these savings will help.”
Officials said Indiana ended its 2026 fiscal year in July with a budget surplus of $1.86 billion, and had $4 billion in reserves.
“Affordability is my top priority, and my gas tax suspensions are delivering the cheapest gas in America for Hoosiers,” Braun said in a statement.
In past press briefings, Braun blamed former president Joe Biden for higher gas prices and later the war in Ukraine. This time he cited the war with Iran, which coincided with the gas price surge.
Braun, a Republican and strong President Donald Trump backer, on Thursday said the higher prices resulted from “disruptions to global shipping lanes.”
“It’s clear to see what we’re doing kept Iran from having a nuclear weapon. The administration is putting economic sanctions on and that’s what worked in the long run.”
Braun said Indiana’s strong economic position and efficiently run government allows the state to maintain the lowest gas prices in the nation.
“Forty-nine other states probably wanted to do it, but weren’t in a position to do it,” Braun said.
He said there’s the possibility of two more extensions under the August emergency order he authorized.
GasBuddy reported on Thursday that Sam’s Club in Merrillville was selling gas at $3.19 a gallon while GoLo in Lake Station was at $3.24 a gallon. A Speedway station on Ridge Road in Munster sold gas at $3.45 a gallon. A Family Express on U.S. 30 in Valparaiso was at $3.25 a gallon Thursday afternoon.
Meanwhile, a GoLo station on Buffalo Street in New Buffalo, Mich., charged $3.99 a gallon.
In South Holland, Ill., a Thornton station charged $4.09 a gallon, according to the GasBuddy app.
Carole Carlson is a freelance reporter for the Post-Tribune.