Hoosiers using diesel receive no relief from tax suspensions

Our daughter called last week, and she was absolutely beside herself. She had just topped off her diesel-powered VW Jetta. It cost $42 for not even half a tank.

As a young woman working and living independently, her rising fuel costs have her in panic mode. Diesel has surpassed $6 a gallon for the first time in U.S. history. And yet Gov. Mike Braun has left her and other diesel owners out of state relief.

(For those wondering, our daughter’s car gets much better mileage than mine and likely yours.)

The governor’s continual gas tax suspensions don’t apply to diesel purchases, which means she hasn’t saved a cent from what could end up being $1.1 billion in savings for motorists over eight months.

She isn’t the only one asking why, so I checked in with Braun.

“Diesel is normally used by businesses. So, businesses versus households. That was the reason it wasn’t included,” he said, noting the diesel price spike was only recent.

“Diesel’s a valid issue. It’d be something else that we could do. That’ll probably have to wait though until we see how long it sticks there. My prediction is once we get through the midterms, there’ll be a lot of dynamics that change,” Braun said.

But this answer falls short for me. First off, Indiana has the fourth-highest diesel tax in the nation, according to the Tax Foundation. You heard that right. It’s 64 cents per gallon. Comparatively, Indiana’s gas tax is 37 cents a gallon.

Add federal and sales taxes on top of that, of course.

Braun intimates that suspending the diesel tax doesn’t help real people. But Indiana’s Vehicle Fuel Dashboard shows 227,500 diesel vehicles were registered in the state during 2025. It’s a small percentage of the overall number of vehicles, about 4%. But that doesn’t mean those people shouldn’t count.

The percentage of diesel vehicles is actually growing while gasoline powered is decreasing over time.

In addition to my daughter, who drives her Jetta every day, my husband also has a diesel pickup truck. So do many farmers in Indiana. Luckily for us, the truck isn’t his daily vehicle.

Ignoring thousands of taxpaying citizens is a flawed choice.

And it’s not just about my family: here are a few comments I have received from readers.

– “Nothing for the guy with a diesel pickup truck though. $5.60 + a gallon.”

– “Wonder why not — truckers are taking a big hit rn.”

I would argue we are all paying for higher diesel in the price of goods, which are shipped all over the nation and to our homes.

Our trash service has a fuel surcharge because many of the trucks run on diesel. Guess what? That surcharge has gone up $1 in the last year, or about 30%. And it’s applied to every bill.

I know that businesses don’t have to pass on the savings to customers, which is a concern, but you could say the same about many policy discussions including those involving healthcare.

I’ve been vocal that I think Braun is pushing the limits of the law that allows the gas tax suspension. But he has used that lever, and his choices are not treating Hoosiers equally.

Gasoline was hovering around $4.44 per gallon nationally as of Thursday, according to AAA. A year ago, that was $3.20, a 38% increase. Meanwhile diesel has reached an all-time high of $6.40 a gallon – up 72% from a year ago when it was at $3.71.

We are all paying for this diesel surge, but especially my daughter. Which is why I just sent her about half my savings from the gas tax suspension. She can fill up her tank once.