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Braun renews gas tax suspension, broadens untaxed diesel use for farmers

A gas station in Indianapolis advertises diesel at $6.99 a gallon on Wednesday, Sept. 30, 2026. Diesel hit a record high price in September.
Mackenzi Klemann
/
Indiana Capital Chronicle
A gas station in Indianapolis advertises diesel at $6.99 a gallon on Wednesday, Sept. 30, 2026. Diesel hit a record high price in September.

Gov. Mike Braun on Wednesday renewed Indiana’s gas tax suspension for another 30 days — until early November — and issued a new order lifting restrictions on the sale of untaxed diesel fuel for semi-trucks operated by farmers and timber harvesters, citing continued disruption to global oil supply.

The order comes as diesel hit a record high $6.92 average in Indiana in September.

“Affordability is my top priority and my gas tax suspensions have delivered immediate tax relief and some of the cheapest gas in America for Hoosier families,” Braun said. “I’m delivering relief for Hoosier farmers by lifting special fuel restrictions to help ease the burden and providing relief from high gas prices to keep more money in Hoosiers’ pockets and make life more affordable.”

A coalition of more than 50 state legislators sent a letter to Braun this week asking him to lift restrictions on off-road diesel fuel for farmers, who have not seen relief at the pump during the gasoline tax suspension.

The diesel fuel covered by Braun’s order is untaxed, but limited to off-road usage in tractors, bulldozers and other equipment.

Braun’s order will permit farmers and timber harvesters to use off-road fuel for “any farm-related activities” for the next 30 days, at which time he will review both orders for possible renewal.

Indiana’s gasoline excise and sales taxes — which would be about 61 cents a gallon — will remain suspended through Nov. 4.

This story will be updated.

Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.

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