Every fill-up is taking a bigger bite out of drivers’ wallets. Rising fuel prices already hurt, and fuel taxes can make the pain even worse.
With tensions in the Middle East keeping pressure on fuel markets, some states are giving drivers a break. Others kicked off July by charging even more at the pump.
Indiana
Indiana drivers are getting one last shot at fuel tax relief.
Gov. Mike Braun announced a final extension of the state’s gas tax holiday. But once again, truckers and other diesel users are left paying full price.
Back in April, Braun declared an emergency and paused Indiana’s 7% gas usage tax.
At the time, the tax was 17.2 cents a gallon. Without the holiday, it would now be 23 cents.
The tax rises and falls with gas prices and is added to Indiana’s 36-cent gas excise tax.
The original tax break was set to end on May 8, but Braun extended it through June 7. He also suspended the state’s gas excise tax.
He said the move would double the savings drivers see at the pump.
Another extension carried the break through July 7.
Now, Braun has approved one last extension through Aug. 6.
Indiana law limits emergency declarations to 60 days. Governors can renew them once for up to 120 days. Any extension beyond that requires approval from lawmakers.
“Affordability is my top priority. I am once again extending these gas tax savings to make life more affordable for Hoosier families,” Braun said.
Affordability is my top priority. That is why today I am announcing another extension of the gas tax holiday – giving Hoosiers another round of relief and ensuring Indiana maintains the lowest gas prices in the county as we prepare to celebrate our nation’s 250th anniversary. pic.twitter.com/XxrPY9jckP
— Governor Mike Braun (@GovBraun) July 2, 2026
Fuel tax relief for all
Indiana isn’t the only state that tried to ease the pain.
Georgia, Illinois and Kentucky all offered fuel tax relief that included diesel.
Georgia’s fuel tax holiday ended in June. Kentucky’s break expired July 2 after helping truckers and others for nearly two months.
Beginning in early May, Kentucky cut fuel taxes and canceled a planned tax hike.
The state normally collects 26.4 cents per gallon in gas tax. The diesel rate is 23.4 cents. Both rates change with fuel prices.
During the conflict with Iran, Gov. Andy Beshear used an executive order to cut both taxes by 10 cents per gallon.
That lowered the gas tax to 16.4 cents. The diesel tax fell to 13.4 cents.
Kentucky drivers also avoided another hit. A scheduled July 1 fuel tax increase was canceled.
Illinois
Illinois drivers are catching a break.
Fuel taxes were supposed to rise July 1. The change is tied to the state’s inflation formula. Instead, Gov. JB Pritzker put the increase on hold for six months.
Even with the pause, Illinois drivers have watched fuel taxes climb sharply. Since 2019, the diesel tax has jumped from 21.5 cents to 55.8 cents. The gas tax has climbed from 19 cents to 48.3 cents.
The governor’s office said the delay is intended to help drivers facing higher living costs and rising energy prices. LL
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