INDIANAPOLIS (WLKI) - Indiana motorists are expected to see a sharp increase in gasoline prices beginning Friday as the state's 120-day gas tax holiday officially expires.
The temporary suspension ends at 11:59 p.m. Thursday, Aug. 6, and the state will resume collecting both the standard gasoline excise tax and the gasoline use tax on Friday, Aug. 7.
Together, the reinstated taxes are expected to increase gasoline prices by approximately 61 cents per gallon at the pump.
The standard gasoline excise tax is set at 37 cents per gallon, while the gasoline use tax, which functions as the state's 7% sales tax on fuel, is adjusted monthly based on average retail gasoline prices. Both taxes were suspended under the governor's emergency order.
Gov. Mike Braun implemented the gas tax holiday in April 2026 after international disruptions to oil supplies drove fuel prices higher. The temporary tax relief reduced gasoline prices by roughly 61 to 62 cents per gallon, helping Indiana maintain some of the nation's lowest average fuel prices throughout the summer travel season.
Under Indiana law, an emergency suspension of fuel taxes can remain in effect for a maximum of 120 days. Any extension beyond that period would require action by the Indiana General Assembly.
With the tax holiday ending, drivers are encouraged to compare fuel prices among local stations, use available fuel rewards programs and plan ahead as gasoline prices adjust to the reinstated state taxes.
The increase comes as global crude oil prices continue to fluctuate amid ongoing international market uncertainty, adding further pressure to fuel costs heading into late summer.