Braun announces new energy emergency, continues Indiana’s gas tax suspension

Those taxes of 58.9 cents a gallon were set to be reimposed starting Friday as the governor said last month he didn’t have the power to continue the tax break without the Legislature coming into special session and authorizing another extension.

Braun on Wednesday cited a new reason for the emergency — the conflict in Ukraine instead of the war in Iran. He also cited a disruption to the Alberta Oil Sands Region from Canadian wildfires.

“New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes. Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer,” he said. “I’m keeping those savings going for Hoosier families, and my recommended budget will tap our reserves to keep state and local infrastructure projects fully funded.”

The governor first partially suspended the gas taxes by executive order on April 8 following the spike in pump prices after President Donald Trump launched the war with Iran in February.

Braun fully suspended the taxes in May, but the state’s energy emergency law limits a governor’s action to a 120-day maximum without legislative approval.

The state’s gasoline taxes include an excise tax of 37 cents per gallon (which increased by one cent as of July 1 under state law) and the gasoline use tax — effectively the state 7% sales tax collected on gasoline that was to be 21.9 cents a gallon during August.

Indiana’s average gasoline price Wednesday of $3.57 per gallon for regular gas was the lowest statewide average, compared to the national average of $4.08, according to AAA’s tracking. Indiana pump prices have gone up from $3.06 in early July, as prices have increased nationwide.

The statewide Indiana average was $2.68 in late February before the Iran war started.

The state gas taxes are directed toward the state highway department and local governments for road projects, with the Braun administration projecting a decline of $533 million in revenue from the four months of the tax suspension.

Braun pledged to reimburse local governments from the State Highway Fund, and has suggested lawmakers could draw from the state’s growing surplus to replace the Indiana Department of Transportation’s lost revenue.

This story will be updated.