(Indianapolis, IN) - Indiana Governor Mike Braun has issued a last-minute stay of execution for the state’s gas tax holiday.
The suspension of gasoline taxes, which saves Hoosier motorists about 62 cents per gallon, was set to expire Thursday night. The governor put it into effect in April to counteract market factors largely driven by the conflict in Iran. Braun extended it multiple times throughout the summer, reaching the limit of his executive power.
After Thursday, Braun’s only recourse was to appeal to the state legislature or declare an emergency. He has done the latter.
According to a statement issued by the governor’s office, disruptions to global oil shipping lanes caused by ongoing conflicts in Ukraine and the Canadian wildfires “have created new pressures on fuel prices that are driving the price of gas for Hoosiers to unnatural levels outside the norm of standard economic conditions.”
Indiana Attorney General Todd Rokita backed the governor’s move. “Nothing in Indiana’s emergency powers statutes prohibit the Governor from declaring separate emergencies based upon different factors,” Rokita said. “It is within the Governor’s authority to give Hoosiers temporary and much needed relief at the pump based upon changed conditions. Frankly, the General Assembly really needs to update this law so it can be better utilized by the Governor and enforced by the Attorney General in the future.”
Braun’s office says the governor has reached an agreement with House and Senate fiscal leadership, repeating the claim that there is enough money in state reserves to cover expenses and replace local lost revenues. The reserve balance is reportedly on track to be over $5 billion.
“Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer,” said Braun. “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 new order will take effect Friday and last until at least September 5. It could be renewed for as long as 120 days.
