Gov. Braun Extends Gas Tax Holiday Through September 5

One day before Indiana's gas tax holiday was set to expire on August 6, Gov. Mike Braun declared a new statewide energy emergency and extended the suspension. Blackford County drivers will continue saving approximately 59 to 62 cents per gallon at the pump through at least September 5.

The new emergency is based on different factors than the original declaration: disruptions to global oil from the Russia-Ukraine conflict in the Black Sea and Kerch Strait, and Canadian wildfires affecting the Alberta Oil Sands Region. The original emergency was tied to the war with Iran.

The new emergency starts a fresh 120-day authorization window effective August 7. Braun will review and renew every 30 days, with the current extension running through September 5.

Attorney General Todd Rokita approved the legal basis, stating that nothing in Indiana's emergency powers statutes prohibits the governor from declaring separate emergencies based on different factors.

The total cost of the gas tax suspension since April — including this extension — is $610 million in lost state revenue, at a rate of approximately $140 million per month. Braun plans to use the 2027 budget session to tap the state's more than $5 billion in reserves to replenish lost revenues and keep infrastructure projects funded. The first reimbursement tranche of $38 million to local governments, covering April and May, was already approved in July.

The extension has bipartisan legislative support. House Speaker Todd Huston and Senate Appropriations Chair Ryan Mishler both said they will work on infrastructure funding in the 2027 budget.

Source: WFYI/IPB News (August 5, 2026); Chicago Tribune/AP (August 5, 2026); WAVE3 News (August 5, 2026)