Indiana gas tax suspension takes effect, but savings may take time to reach drivers
FORT WAYNE, Ind. (WANE) — Indiana drivers may soon notice some relief at the pump after Governor Mike Braun suspended the state’s gas use tax for 30 days.
At the start of April, the Indiana gas use tax jumped up several cents from 15.3 cents per gallon to 17.2 cents per gallon. But the 7% usage tax on fuel is determined by a calculation that uses the average price of gasoline over a previous one-month period. The temporary suspension is removing 17.2 cents per gallon from Indiana’s gas use tax through early May. The change took effect at midnight, meaning wholesale fuel deliveries began reflecting the lower tax immediately.
According to Petroleum Traders Vice President Peter Eshelman, the reduction represents real savings for consumers, though not necessarily a one-for-one drop at the pump right away.
“Less taxes are always less money to pay for the consumer,” Eshelman said. “However, with the market volatility, you may or may not see it one for one.”
Read more at: https://www.wane.com/news/local-news/indiana-gas-tax-suspension-takes-effect-but-savings-may-take-time-to-reach-drivers/