Indiana Suspends Gasoline Use Tax: What It Means for Retailers, Distributors, and Consumers

On April 8, 2026, Governor Mike Braun declared an energy emergency and suspended the collection of Gas Use Tax for 30 days. In accordance with Executive Order 26-09, the Indiana Department of Revenue will stop collecting gasoline use tax (GUT), currently set at 17.2 cents per gallon. The suspension is in effect through May 8, 2026, unless extended or terminated earlier by the state.

What the Suspension Means

• During the suspension period, the gasoline use tax is not to be collected on applicable transactions.
• The Indiana Attorney General’s office has indicated it will actively monitor fuel pricing to ensure consumers receive the full benefit of the tax relief and to prevent price gouging.
• Under Indiana's price gouging law, which defines the term as "charging a consumer an unconscionable amount for the sale of fuel," price gouging occurs if: 
  • The amount charged grossly exceeds the average price at which fuel was readily obtainable within the retailer's trade area during the seven (7) days immediately before the declaration of emergency
  • The increase in the amount charged is not attributable to cost factors of the retailer, including replacement costs, taxes, and transportation costs incurred by the retailer

Department of Revenue Guidance

On April 10, the Indiana Department of Revenue (DOR) released additional guidance clarifying how the suspension should be handled across the fuel supply chain.

Guidance for distributors

• Do not collect gasoline use tax from retailers between April 8 and May 8
• Report exempt gallons on upcoming GT-103 filings (May and June)
• If you’ve already collected Gas Use Tax on any of the dates in the suspended period, you will need to reconcile that with the retailer.

For Retailers

• If your distributor has charged you Gas Use Tax during this suspended period, work with them directly to resolve the amount.
• DOR will not be issuing refunds through the standard Form GA-110L process.

Key Clarification on Existing Fuel Inventory

After speaking with the Department of Revenue, it was determined that retailers who received a shipment of fuel before April 8, 2026, when the tax was still in effect, will be able to include the GUT in their pump price to customers as they sell the fuel from that shipment. Once the retailer receives a new shipment of untaxed fuel, they will no longer be able to include the GUT in their pump price. DOR will be updating its website accordingly.

In addition, the Attorney General’s office has provided IFFA with a letter outlining their role in monitoring for price gouging. IFFA has been in communication with the Attorney General’s office and will work with them should issues arise. They are aware of the DOR determination on shipments received prior to April 8, 2026, and will take that into consideration when investigating any claims. This distinction is critical and has been acknowledged by both the Department of Revenue and the Attorney General’s office when evaluating pricing practices.

What Comes Next

IFFA remains in close communication with state agencies and will continue to provide updates as additional guidance becomes available. Members with questions about compliance, reporting, or pricing implications are encouraged to reach out directly.