(The Center Square) — Indiana’s Gasoline Usage Tax increased to 23.1 cents this week, bringing the total tax per gallon of gas paid by Hoosiers to a record high of 74.5 cents. Of that amount 33 cents is Indiana tax and 18.4 cents is federal tax.
Though higher than last month’s rate of 22 cents per gallon, the current state gasoline use tax is below the record level of 24.1 cents set in July.
The tax rate, by law, is set each month by calculating 7% of the average retail price of gasoline for a 30-day period. That price was $3.2938 per gallon from Sept. 16 to Oct. 15, according to the Department of Revenue.
Democratic leaders have used the increase to renew their call for a suspension of the gasoline use tax as a way of helping Hoosier families.
“Indiana Republicans like to spend more time talking about problems than solutions,” House Minority Leader Phil GiaQuinta, D-Fort Wayne, said. “It’s easy to gripe about the toughest issues facing our state and nation but coming up with answers takes real leadership. He added, “It’s unconscionable that Hoosier families are not only suffering at the hands of Putin’s Price Hike, but the one ignorantly implemented and maintained by the GOP.”
“When I began our call to suspend the gas tax back in March, we knew that global supply chain issues were causing high inflation and rising gas prices across the world,” Rep. Gregory W. Porter, D-Indianapolis, ranking Democrat on the House Ways and Means Committee, said in a statement. “That’s why we fought to suspend the gas tax through the end of the year — to help."
Maryland, Connecticut, Georgia, New York, California and Florida have instituted suspensions of at least some fuel taxes this year.
Republican Gov. Eric Holcomb said in May that an emergency declaration would be needed for the governor to suspend the gasoline tax, and the conditions for emergency action, including a shortage of fuel, are not present. “The states that have suspended the gas tax thus far have done so through the legislature,” he added in a statement.
Republican lawmakers, who hold a majority in both chambers of the Legislature, have consistently declined to comment on suspending the state’s gasoline taxes.
The Center Square requested comment on the matter from House Speaker Todd Huston and Senate President Pro Tem Rodric Bray but did not receive replies.
The federal gas tax rate has not changed since 1993.
INDIANAPOLIS – Gas prices continue to rise across Indiana and nationally. According to AAA, the Indiana average for Sunday, June 5 is $4.99 per gallon. That’s higher than the national average of $4.84 per gallon.
In parts of Indiana, the price of gas is even higher. Near the Chicago area, drivers are paying an average of $5.50 per gallon.
In fact, Hoosier drivers have seen the largest weekly increase across the nation. According to a AAA release from Thursday, these ten states have seen the largest increases in their averages.
Indiana: +33 cents
Ohio: +31 cents
Illinois: +30 cents
Kentucky: +26 cents
Wisconsin: +26 cents
Michigan: +24 cents
Colorado: +21 cents
New Mexico: +19 cents
Nebraska: +18 cents
Minnesota: +18 cents
Gas Prices History
It’s a stark difference from one year ago, when Hoosiers were paying an average of $3 per gallon at the pump. Back in January 2021, the average price was $1.99.
Gas prices this year have been above $3 per gallon. It was in March, when we saw a spike to more than $4. Prices have not gone below $3.60 since then according to GasBuddy.
Why are prices so high?
In the Midwest, our gasoline inventory fell more than any other part of the nation. But, one of the main reasons is the ongoing conflict between Ukraine and Russia. More countries are choosing to stop buying Russian oil. And unfortunately, there’s another factor that could push gas prices even higher – the start of the tropical storm season. A tropical storm or hurricane can create major disruptions across the country.
Could it be worse?
So, where in the country are prices higher than the Midwest? Parts of California are averaging $6.80 per gallon!
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INDIANAPOLIS – Hoosiers paying more for gas this Memorial Day weekend can thank Rep. Braun for their eyepopping prices, as Indiana is experiencing the nation’s largest gas price increase this year due largely to the tax hike enacted by Rep. Braun and Statehouse Republicans.
The Associated Press reported today that Indiana is tied with California for the nation’s largest gas price increase over the past year. Filling up a tank in Indiana now costs $2.84 a gallon on average, 30% more than it did a year ago, and is above $3.00 per gallon in some parts of the state. That 66 cent-per-gallon average increase is more than 20% higher than the average increase nationwide.
Blame for the nation-topping spike in gas prices has fallen on the gas tax increase enacted last year by Rep. Braun and Statehouse Republicans, according to the AP. Indiana’s gas tax is now the seventh highest is the country, and far more expensive than many neighboring states. “We will definitely attribute [higher gas prices] to their rise in gas tax,” a spokesperson for the American Automobile Association told the AP. Meanwhile, the executive director of the Indiana Petroleum Marketers and Convenience Store Association said that the group is “so concerned because our taxes are much higher than neighboring states.”
Rep. Braun and his Republican Statehouse colleagues have faced criticism from across the political spectrum for the gas tax hike, which is the largest of the tax hikes Rep. Braun repeatedly voted to foist on Hoosiers while trying to cut his own. With more families hitting the road for their summer travel plans, it seems likely that Hoosiers who face increased pain at the pump will blame Rep. Braun for their woes as the campaign heats up.
“As Hoosier families prepare to get away for the holiday weekend, they’re reminded that their gas prices are rising faster than any other state thanks to Rep. Braun’s gas tax hike,” said Michael Feldman, spokesman for the Indiana Democratic Party. “Rep. Braun may claim he’s looking out for Hoosiers, but after voting for the gas tax increase and dozens of other tax hikes while cutting his own, it’s certainly not their wallets that he’s looking out for.”
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The national average jumped to $4.87 a gallon, according to AAA, that's up 25 cents in the past week and 59 cents in the past month.
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A tank of gas in Indiana will set you back an average of $4.33 per gallon as of Tuesday, according to AAA.
This is an all-time high for the state, as gas prices remain on the rise due to a combination of inflation and Russia's invasion of Ukraine.
This most recent spike is likely affected by the European Union edging closer to announcing sanctions on Russian oil, according to a press release from GasBuddy. European Commission President Ursula von der Leyen called on the EU to ban oil imports from Russia in a speech last Wednesday.
Compounding the issue, inflation rose at the fastest pace since 1981 in March, as the consumer price index jumped 8.5% annually. Inflation is now at a 40-year high in the United States.
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One year ago, the average price of a tank of gas in Indiana was $2.98. Just one month ago, the average gas price in Indiana was $3.99 per gallon, over 30 cents cheaper.
However, these prices have not been adjusted for inflation, according to USA TODAY. The U.S. national average, which as of Tuesday was $4.37 per gallon, surpasses an all-time record; but adjusted for inflation, a previous record average gas price in 2008 would be over $5.
Unfortunately, there's no sign Hoosiers could see a reprieve any time soon, as gas prices will likely stay high as summer approaches.
If the U.S. experiences an above-average hurricane season, that could also knock out refinery capacity when it's badly needed, Patrick De Haan, head of petroleum analysis at GasBuddy, said in the press release.
"There’s little, if any, good news about fuel prices heading into summer," De Haan said in the release.
Average gas prices across Indiana
Here are some average fuel prices for a tank of regular gas in Indiana metro areas:
Indianapolis: $4.30
Bloomington: $4.33
Evansville: $4.22
Fort Wayne: $4.30
Gary: $4.58
South Bend:
Terre Haute: $4.28
Kokomo: $4.24
Lafayette: $4.45
Michigan City: $4.58
Muncie: $4.28
South Bend: $4.33
USA Today contributed to this report.
Contact IndyStar trending reporter Claire Rafford at or on Twitter @clairerafford.