By Jasper Ward
April 8 (Reuters) – Indiana on Wednesday became the second U.S. state to suspend its gas tax amid the ongoing U.S.-Israeli conflict with Iran.
Governor Mike Braun, a Republican, said the suspension of the 7% usage tax on fuel will last 30 days and could be extended depending on “the circumstances in the Middle East.”
“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices. Affordability is my top priority,” Braun said after issuing an emergency declaration, using a term to describe residents of the state.
He said the state will be “patrolling the pumps” to make sure the tax relief is passed directly to consumers. Braun also called on the state’s attorney general to enforce protections from price gouging by retailers.
Iran and the U.S. agreed on Tuesday to a two-week ceasefire brokered by Pakistan, but fighting was still taking place on Wednesday.
Braun said it will take time for residents of Indiana to feel the effects of the ceasefire.
The average gas price in Indiana is $4.137, according to the American Automobile Association. The average price was $3.466 a month ago, AAA said.
Fifty-five percent of respondents in a recent Reuters/Ipsos poll said their household finances had taken at least “somewhat” of a hit from the increases in gas prices. Among those seeing an impact, 21% said their finances were affected “a great deal.”
Georgia became the first state last month to suspend its gas tax as fuel prices continue to surge in response to the conflict, which started February 28.
Trump has called the rise in gas prices a “short-term increase.”
(Reporting by Jasper Ward in WashingtonEditing by Rod Nickel)
