
Gov. Mike Braun declared a new energy emergency Wednesday and extended Indiana’s gasoline tax holiday another 30 days, keeping 58.9 cents a gallon off the price at the pump through early September — and reopening a fight over how the state will pay for the roads that money was supposed to build.
The taxes had been set to return Friday. Braun said in July that his July 2 extension would be his last, telling reporters he lacked the authority to continue the break without lawmakers coming into special session. On Wednesday he found a new basis for it: the war in Ukraine and disruption to the Alberta Oil Sands Region from Canadian wildfires, rather than the Iran conflict that triggered the original emergency in April.
“New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes,” Braun said in announcing the order. “Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer. 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.”
What’s suspended
Two taxes remain off the books:
- The gasoline excise tax of 37 cents per gallon, which rose a penny July 1 under existing state law.
- The gasoline use tax — effectively the state’s 7% sales tax as applied to fuel — which was set at 21.9 cents a gallon for August.
Indiana’s average price for regular was $3.57 a gallon Wednesday, the lowest statewide average in the country against a national average of $4.08, according to AAA. That is up sharply from $3.06 in early July, and from $2.68 in late February before the Iran war began.
Huston: ‘make local communities and INDOT whole’
House Speaker Todd Huston, R-Fishers, endorsed the extension while signaling that the Legislature will have to sort out the road funding hole when it writes the next state budget.
“I support the Governor’s action today to provide continued relief for Hoosiers at the pump,” Huston said in a statement Wednesday. “All taxes paid at the pump are used to maintain and improve Indiana’s roads, and we intend to make local communities and INDOT whole for any road funding losses.”
“As we prepare for the next state budget, our intent is to work with the Governor and our colleagues in the Senate to identify existing resources and continue making the infrastructure investments that support Hoosiers, businesses and our growing economy,” he said.
That is not a small bill. Braun’s administration projects the four months of suspensions will cut $533 million from the revenue that flows to the Indiana Department of Transportation and to cities, towns and counties for road work. The governor has already directed the state to reimburse local governments from the State Highway Fund, with distributions underway since late July, and has suggested lawmakers tap the state’s surplus — which grew about 60% over the past year to roughly $4 billion — to cover INDOT’s share.
Democrats: ‘grasping at straws’
Indiana Democratic Party Chair Karen Tallian rejected the governor’s stated rationale outright, calling the new emergency declaration political cover for the Trump administration.
“Make no mistake, Governor Braun is using questionable legal authority to give cover to Trump for his undeclared war against Iran and the mess it created with oil prices worldwide,” Tallian said. “Braun is making up excuses — this time the long-running war in Ukraine and the Canadian wildfires — as reasons for a second energy emergency. Seriously? The truth is that he’s grasping at straws to outlast Trump’s unpopular war in the Middle East.”
Tallian pointed to S&P Global reporting that the Alberta wildfires were not expected to affect oil and gas production, and said no coverage has linked the fires to the oil sands region since early June.
“As long as the President continues with his unauthorized war for an unknown time, and the Middle East situation is an incoherent volatile mess, gas prices will continue to rise,” she said. “Governor Braun, we all want cheaper gasoline, not short-term highs that cost our local governments and INDOT over $533 million. Tell Trump to end the war in Iran today.”
The legal question
The dispute over Braun’s authority is not purely rhetorical. Indiana Code allows a governor to declare a disaster emergency by proclamation for up to 30 days, and states that “the governor may not renew or extend a proclamation more than once without approval of the general assembly.”
Braun’s first order, issued April 8, declared a 30-day emergency and lifted only the 7% sales tax on gasoline. A May 6 order extended it and added the excise tax suspension. A June 3 order declared a “second” emergency. By June, Braun was citing a 120-day maximum in the statute as the source of his authority; on July 2 he said the road ended in August absent legislative action. Wednesday’s order rests on a separate set of triggering conditions — Ukraine and the Canadian wildfires — rather than an extension of the earlier emergency.
Braun said in July he had not discussed a special session with legislative leaders but had not ruled one out. Nothing in Wednesday’s announcement indicated that has changed.
What it means locally
For Hamilton County drivers, the practical effect is another month of pump prices running roughly 59 cents below what they would otherwise be. For local government, it is another month of road money that has to come from somewhere else — and a reimbursement promise from the state that lawmakers have not yet written into a budget.
The suspension now runs through early September. Whether it goes further is a question for the General Assembly.








