Indiana Gov. Mike Braun announced a 30-day gas tax holiday on Wednesday.
“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices,” Braun said at a press conference. “Affordability is my top priority.”
Braun estimated a 30-day suspension would save residents approximately $50 million.
Gasoline retailers will be responsible for delivering the gas tax relief directly to consumers. Braun said the state will be monitoring prices to ensure that savings are delivered, and Attorney General Todd Rokita is charged with enforcing protections from price gouging by retailers.
The state’s usage tax on fuel is normally 7 percent. The suspension does not include the state’s diesel fuel fax, the state’s excise tax or the federal gas tax.
Braun said the tax holiday could be extended depending on what happens in the Middle East.
“Hoosiers are tired of unstrategic and unfocused foreign wars that cost American lives, drive up gas prices and raise the cost of living,” House Democratic Leader Phil GiaQuinta (D-Fort Wayne) said.
The average price of gasoline in Indiana is $4.137, according to the American Automobile Association, up from $3.466 in March.
Indiana becomes the second state to suspended its gas tax after Georgia.