(INDIANAPOLIS) - Indiana drivers could continue receiving relief at the gas pump beyond June 7 as Gov. Mike Braun considers extending the state's temporary gas tax suspension.
Braun said Friday that he plans to review the situation before the current suspension expires and believes there may be flexibility under Indiana's energy emergency law to continue the tax break.
The governor first suspended Indiana's gasoline use tax through an executive order issued April 8. A second executive order on May 6 expanded the relief to include the state's 36-cent-per-gallon gasoline excise tax.
Combined, the suspended taxes currently amount to about 59 cents per gallon.
The Indiana Department of Revenue recently announced that the gasoline use tax rate would otherwise increase from 23.3 cents per gallon in May to 26.5 cents per gallon in June.
According to AAA, Indiana's average gasoline price Friday was $4.005 per gallon, compared with the national average of $4.552.
Braun said he expects to make a decision on any extension shortly before the current suspension expires.
Questions remain about how long the governor can continue extending the emergency declaration that allows the tax suspension. Indiana law permits a governor to declare a state of energy emergency for up to 60 days and states that a proclamation may not be renewed or extended more than once without approval from the General Assembly.
Braun declared the energy emergency April 8 and extended it May 6 while expanding the tax relief.
State lawmakers have discussed the possibility of legislative action, but no decisions have been announced.
Fuel market analysts say Indiana motorists have seen significant savings from the tax suspensions. Comparisons with neighboring states suggest much of the tax relief has been passed on to consumers through lower prices at the pump.
Analysts also warn that if the suspensions expire, gasoline prices in Indiana could increase by more than 60 cents per gallon within hours as the taxes are reinstated.
Braun said he will weigh the impact on drivers against the state's need to fund road and bridge projects before making a final decision.